As the Philippines races toward its targets of 35% renewable energy by 2030 and 50% by 2040, even the unseen but equally critical components of the power system must evolve. One such innovation is FR3™ natural ester dielectric fluid by Cargill, designed to make the grid more efficient and ready for the demands of solar and wind power.

Transformers regulate electricity flows across the power grid and are traditionally cooled and insulated with mineral oil. But in tropical countries like the Philippines, rising summer temperatures, heavy demand, and extreme weather can push these systems to their limits. Mineral oil, being petroleum-based, also carries high fire risk and can cause long-lasting soil or water contamination in the event of leaks.

Kin Yu Lam, Regional Application Engineering Leader for Power Systems (Southeast Asia and Pacific) at Cargill, said this enhanced fire-safety advantage (due to a higher flash point than mineral oil) is the main reason why utilities are increasingly specifying natural esters for their systems. 

“We have more than 3.5 million transformers installed with FR3 fluid worldwide, running for nearly 30 years without any reported fires or major environmental issues,” he said in an interview with Power Philippines.

Lam also highlighted that solar and wind power introduce variable, often fluctuating loads on the grid—something mineral oils were never designed to handle. “With FR3 fluid, you can actually accommodate higher loading compared to mineral oil transformers,” he said. “That means smaller transformers and lower energy losses, leading to cost savings.”

For Meralco, the country’s largest power distributor, the technology offers a practical way to meet surging summer demand while preparing its system for clean energy integration. The utility plans to retrofill more than 180,000 distribution transformers with plant-based ester oil by 2030.

Climate-related risks make FR3™ fluid especially relevant to the Philippines. Typhoons and flooding can damage transformers and cause leaks, while dense urban areas face higher fire hazards. In such events, the choice of insulating fluid matters: petroleum-based mineral oil can persist in soil and water for decades, complicating cleanup and raising remediation costs. FR3 fluid, by contrast, is plant-based and readily biodegradable according to OECD 301B— which can reduce remediation expenses.

Underground cabling projects also stand to benefit. Transformers are increasingly being installed beneath dense commercial districts, making fire safety paramount. “If a transformer filled with FR3 fluid were to catch fire underground, the flames would die out once the ignition source is removed,” Lam noted. “That adds a critical layer of protection when transformers are located near occupied buildings or in busy city centers.”

Beyond safety and performance, FR3 fluid reflects a shift toward better agricultural practices. Made from soybean oil, the fluid is non-hazardous according to the Globally Harmonized System and the raw materials are globally abundant. 

“As our core business is in agriculture, we wanted a fluid that utilities could rely on without significantly affecting food availability,” Lam explained. “Soybean is one of the five most abundant crops worldwide, and its meal is the main protein source for the food and animal feed industries. For that reason, soybean oil is also one of the most abundant vegetable oils in the commodity market.”

Mineral oil may have defined transformer technology for more than a century, but FR3 fluid is emerging as the regional benchmark for better grids. As the Philippines aligns with its renewable energy targets, adopting proven ester fluids positions the country not just to keep pace, but to lead by showing how climate-vulnerable nations can build resilience from the inside out.

The question is no longer whether grids should evolve, but how quickly they can. Can plant-based technologies like FR3 fluid set the standard for transformers that can enhance renewable energy integration in climate-vulnerable nations? What do you think it will take to build a power system that’s both resilient and sustainable?