Manila Electric Company (Meralco) has formally secured its role as the microgrid system provider for Cagbalete Island in Mauban, Quezon, following the signing of a Microgrid Service Contract with the National Power Corporation (NAPOCOR)—a move that positions the utility at the forefront of one of the country’s most significant off-grid electrification projects to date.

The contract was signed on December 4, 2025, shortly after Meralco received the green light from the Department of Energy (DOE) for its microgrid system proposal. The agreement enables the project to tap subsidies from the Universal Charge for Missionary Electrification, a critical mechanism for keeping power rates affordable in remote areas.

“With the launch of the Cagbalete Microgrid, we reaffirm Meralco’s commitment to power progress with sustainable energy solutions, ensuring that no one is left in the dark,” Meralco Executive Vice President and Chief Operating Officer Ronnie L. Aperocho said. “This is more than electricity – it’s about giving the light of love, joy, and hope to our fellow Filipinos in Cagbalete Island. Through this collaboration, more households will have a brighter Christmas and soon, the entire island will benefit from stable and reliable electricity that will power their lives for the better.”

The development stems from Meralco’s collaboration with the DOE and the Energy Regulatory Commission (ERC) under the framework of the Microgrid Systems Act and its implementing rules and regulations. The ERC is expected to determine the final electricity rates in the next phase of the project.

“I wish to recognize Meralco for stepping forward as the Microgrid System Provider,” NAPOCOR President and Chief Executive Officer Jericho B. Nograles said. “The responsibilities outlined in the agreement: design, construction, operation, billing, maintenance, guaranteed dependable capacity, and the 24/7 delivery of electricity to all existing and future households; these are not light commitments. They reflect a strong confidence in the mission and a readiness to support communities that rely on us for progress.” 

Once fully built out over the next three years, the Cagbalete Microgrid is projected to become the largest microgrid system in the Philippines. The system will consist of a 2.8-megawatt peak (MWp) solar photovoltaic installation, a 6.69 megawatt-hour (MWh) battery energy storage system, and four 0.25-megawatt diesel backup generators. The hybrid setup is designed to deliver round-the-clock electricity to more than 1,000 residential and commercial customers, including critical facilities on the island.

Meralco said initial operations are targeted within December, allowing the project to achieve 100% household-level electrification for Cagbalete. The company also estimates the system could help offset up to 42,000 metric tons of carbon dioxide emissions, aligning the project with the country’s broader clean energy and sustainability targets.

What do you think about Meralco’s expanding role in microgrid development and off-grid electrification? Join the discussion.

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