Meralco to energize Cagbalete Island

MANILA ELECTRIC CO. (Meralco), the country’s largest private electric distribution utility, has started pursuing microgrid electrification as it prepares to energize homes and businesses on Cagbalete Island in Mauban, Quezon.

Meralco will install a 2.8-megawatt-peak solar photovoltaic system, a 6.69-megawatt-hour battery energy storage system, and four sets of 0.25-megawatt diesel backup in the next three years, the company said in a statement on Sunday.

The project follows the microgrid service contract signed with the Department of Energy and the National Power Corp. (Napocor), which allows the provision of subsidies through the Universal Charge for Missionary Electrification (UCME).

UCME is a monthly charge collected from on-grid electricity end users to subsidize the cost of power in off-grid areas.

The Energy Regulatory Commission will set the final electricity rates in the next phase to ensure affordability for residents and businesses on the island.

Napocor President and Chief Executive Officer Jericho B. Nograles acknowledged Meralco’s willingness to serve as a microgrid system provider.

“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,” Mr. Nograles said. “They reflect a strong confidence in the mission and a readiness to support communities that rely on us for progress.”

Slated for operation this month, the hybrid solution is expected to deliver electricity to more than 1,000 residential and commercial customers, enabling 100% household-level electrification on the island and providing renewable energy that can potentially offset up to 42,000 metric tons of carbon dioxide emissions.

“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.

Meralco is the main power distributor for Metro Manila and nearby areas, covering 39 cities and 72 municipalities, and delivering power to more than eight million customers.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera