With Distributed Energy Resources (DERs) now flowing from homes and businesses, Manuel V. Pangilinan-led Manila Electric Company (Meralco) is transforming its distribution system to manage multi-directional energy flows and support clean energy deployment at scale.

Speaking at the Berde Renewables Collaboration Summit 2025, Meralco First Vice President and Head of Networks Froilan J. Savet said the utility is investing heavily in grid modernization to accommodate the rise of solar rooftops, battery energy storage systems (BESS), electric vehicles, and microgrids—technologies that are reshaping the role of distribution utilities in the energy transition.

“Meralco is modernizing its grid to support the significant integration of renewable energy at its distribution system,” Savet said. “We are not just distributing power to homes and businesses. We are now enabling a clean, flexible, and intelligent energy system toward a decentralized grid.”

DERs refer to small-scale, decentralized energy technologies typically located near or within the electricity consumer’s premises. These include rooftop solar panels, home and commercial battery systems, electric vehicle charging units, and localized microgrids. Unlike traditional energy systems that rely on power flowing from a single generation point to end-users, DERs enable two-way power flows, where consumers can also act as producers of electricity.

DERs enhance energy access, improve power reliability, reduce grid congestion, and lower electricity costs over time. They also allow end-users to reduce their carbon footprint by generating clean energy on-site. However, the growing number of DER installations presents new technical and operational challenges. Without a modernized grid, uncontrolled DER integration can lead to voltage fluctuations, reverse power flows, and coordination issues that may affect system stability.

To address these concerns, Meralco has adopted a 4-I strategy—Integration, Innovation, Intelligence, and Interoperability. Under Integration, the company ensures that every new DER connection strengthens grid reliability rather than causing instability. Through Innovation, Meralco is adopting new technologies such as BESS, grid-forming inverters, and microgrids to enhance flexibility. The Intelligence pillar involves the use of artificial intelligence for real-time monitoring and control, enabling faster responses and better forecasting. Interoperability ensures that all connected technologies operate smoothly using harmonized communication protocols, standardized devices, and cybersecurity protections.

Meralco is also investing in training programs to equip its workforce with the technical skills required to operate a more complex and digitalized distribution network. The company continues to work with regulators and policymakers to ensure its strategies align with national energy policy and decarbonization targets.

“The energy transition is already happening right now,” Savet said. “The challenge for utilities is how quickly they can adapt to changes in the energy landscape while maintaining grid stability and reliability. In Meralco, we’re not just preparing for it. We’re enabling it.”

As DERs become more widespread in the Philippines, Meralco’s forward-looking investments in AI, storage, and system interoperability are helping set the foundation for a more decentralized, flexible, and clean energy future.

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates on how utilities are transforming their grids to support cleaner, smarter, and more resilient energy systems.