MGEN Banks on Meralco Contract to Revive 1,200-MW Atimonan Coal Plant

 

Meralco PowerGen Corp. (MGEN) is counting on a major power supply contract from its parent company, Manila Electric Co. (Meralco), to determine the future of its long-delayed 1,200-megawatt Atimonan Energy Power Plant in Quezon province.

MGEN president and CEO Emmanuel Rubio identified Meralco’s upcoming competitive selection process (CSP) for 900 MW of baseload electricity as a critical opportunity to move the project forward. The company intends to participate in the bidding, with a winning contract potentially providing the commercial foundation needed to proceed with construction.

Rubio described the procurement round as MGEN’s final opportunity to realize the Atimonan project, which has faced years of regulatory obstacles and repeated changes in its proposed fuel technology.

First envisioned as a liquefied natural gas (LNG) facility, the project was subsequently redesigned as a coal-fired power plant and secured environmental clearance in 2015. Regulatory delays later prompted MGEN to reconsider LNG before returning to its original coal-based direction, this time pursuing ultra-supercritical pulverized coal technology.

MGEN has now drawn a firm line on the project’s fuel choice. Rubio said the company intends to develop Atimonan as a coal-fired facility and sees little justification for converting it back to LNG. He also questioned the need for another LNG terminal in Luzon if the project cannot secure a viable power supply agreement under its coal configuration.

The central challenge is securing a reliable buyer for the plant’s electricity. For a project of this scale, a long-term power supply agreement (PSA) can help establish predictable revenue, strengthen financing prospects and provide investors with greater certainty before construction begins. Without that commercial commitment, the investment case becomes considerably more difficult to sustain.

Meralco, which serves Metro Manila and surrounding provinces, represents a potential anchor customer for the project. Its latest procurement initiative covers 900 MW of baseload electricity under a 15-year PSA, offering prospective generators a long-term supply arrangement.

Under the proposed contract, the winning bidder or bidders would begin delivering 600 MW on February 26, 2031, followed by another 300 MW a year later. Baseload supply is intended to meet the grid’s continuous electricity requirements, making it a key component of power system reliability.

The bidding process is already underway. Interested companies have until Thursday to submit their expressions of interest, while the pre-bid conference is scheduled for November 6. Formal bids must be submitted by December 9.

For MGEN, the outcome could determine whether Atimonan finally advances after years of uncertainty. Securing the Meralco contract would give the project a clearer route to commercial viability. Failure to win the supply agreement, however, could leave the company with few compelling reasons to pursue the long-delayed development in its current form.