MGEN Thermal Energy, Inc., the thermal power generation arm of Meralco PowerGen Corporation (MGEN), aims to become a “best-in-class” thermal generation operator in Asia, as it prepares to expand its energy portfolio through the end of the decade.

Speaking with Power Philippines on the sidelines of the 4th APM Lead Conference & Exhibition in Makati, newly appointed MGEN Thermal Energy President and Chief Executive Officer Arnel Santos shared that the company’s priority is to raise its standards across its operational standards across key areas, including safety, reliability, cost efficiency, commercial performance, and employee development.

“Best-in-class is not a label; it’s actually a set of performance that we want to make sure we can legitimately claim we’re the best-in-class thermal generation operator in Asia,” Santos said.

Santos took over the leadership of MGEN Thermal Energy, Inc., succeeding Felino “Lino” Bernardo, who becomes MGEN’s head of strategic energy transition. Alongside Santos is Sam Manlosa, who was named as the chief operating officer of the thermal generation company.

[Related article: MGEN reshuffles leadership as it advances thermal, LNG, nuclear projects]

Under his leadership, Santos said he wants to build on the company’s existing operational performance, ensuring that improvements are sustainable and supported by clear measurements and targets.

“We want to make sure kasi na ‘yung good performance that we have delivered so far is sustainable, we’re growing, and we’re elevating the bar of performance,” he emphasized.

[We want to make sure that the good performance we have delivered so far is sustainable, that we continue to grow, and that we keep raising the bar for performance.]

According to Santos, the company’s growth strategy will focus on improving efficiency and reliability while keeping pace with the changing energy landscape.

He said they aim to closely monitor and improve efficiency metrics, including net heat rate, to enhance generation capacity and manage costs. This, alongside organic growth initiatives and capital projects, such as battery energy storage systems (BESS), will be a key part of their growth strategy, he added.

MGEN recently secured and renewed ISO certifications across its renewable and thermal generation businesses, which also support its Best-in-Class program. Santos said this reflects the company’s commitment to operating its Visayas power plants responsibly and reliably to help ensure a stable electricity supply.

[Related article: MGEN firms up ISO standards across renewable, thermal fleet]

Next phase of Toledo BESS

MGEN Thermal Energy, Inc. is expanding its BESS portfolio, with the next phase of its Toledo battery facility now being developed.

To recall, MGEN has energized its Toledo BESS in Cebu, which it said is the first two-hour battery storage facility in the Visayas. 

The project’s first phase has a capacity of 25 megawatts (MW) and 56.44 megawatt-hours (MWh), with a second phase of the same capacity targeted for completion by June 2027, pending regulatory approvals.

[Related article: MGEN switches on Toledo BESS project in Cebu]

“We’re just waiting for the provisional authority to operate para we can participate na in the reserves market,” Santos said. “Pero we are now operating, online na siya, and we are doing arbitrage.”

[We’re just waiting for the provisional authority to operate so we can participate in the reserves market. But we are already operating; it is already online, and we are doing arbitrage.]

For the next phase, Santos said the company is developing a new facility that would be a “carbon copy” of the existing Toledo installation.

He said they plan to present the proposal to the board next month for a final investment decision.

Toledo coal plant, Atimonan projects move forward

Santos also shared that they are developing another 83-MW coal plant in Toledo, which they call TPC 1B, while continuing efforts to move forward with the delayed Atimonan project.

MGEN’s 1,200-MW Atimonan coal-fired project in Quezon previously faced delays after the Department of Energy (DOE) reviewed its clearance, but it was later reaffirmed as a committed project after meeting requirements, including being considered “construction-ready” and having environmental approvals.

[Related article: MGEN advances 1,200-MW Atimonan plant, 3 EPC bids under review]

“Ang good news is there is a CSP (competitive selection process) na i-e-expect, so we want to participate in the CSP expected na maglabas nung TOR (terms of reference) in September,” he said. “If that’s positive, then matutuloy na ‘yung project.”

[The good news is that there is an upcoming CSP (competitive selection process), and we want to participate once the TOR (terms of reference) is released in September. If the outcome is positive, then the project will proceed.]

Santos said TPC 1B and A1E are expected to start commercial operations between 2030 and 2031.

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