The Manila Electric Company (Meralco) has secured an additional source of renewable energy through a newly signed power supply agreement (PSA) with First Quezon Biogas Corporation (FQBC). This marks another new step toward the utility’s clean energy transition.

Under the agreement, Meralco will receive 1.25 megawatts (MW) of capacity from FQBC’s 1.4 MW biogas power facility in Candelaria, Quezon. The facility uses advanced anaerobic digestion technology to convert agricultural waste and manure into baseload renewable energy. This effectively offers both clean power and environmental benefits to local communities.

“This signing of the PSA would encourage more investment in biogas to help local communities and to further develop this type of RE technology,” said Meralco Senior Vice President and Head of Regulatory Management Jose Ronald V. Valles. He noted that the agreement will still need to be submitted to the Energy Regulatory Commission (ERC) for review and approval.

The 20-year contract is scheduled to take effect on June 26, 2026.

Meralco said the deal also supports its compliance with the Department of Energy’s Renewable Portfolio Standards (RPS), which require power suppliers to acquire an increasing share of electricity from renewable sources. The RPS currently mandates an annual increment of 2.52%.

Currently, Meralco has secured 1,535 MW of renewable energy capacity from various suppliers, thus surpassing its original 1,500 MW target. With ongoing strategic sourcing efforts, the company expects renewables to make up 26% of its power supply portfolio by 2030. This aligns with the national goal of reaching a 35% renewable energy share by the same year and 50% by 2040.

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