Energy
The Manila Electric Co. (Meralco), the country’s largest power distributor, has signed a 20-year power supply agreement (PSA) with First Quezon Biogas Corp. (FQBC) for 1.25 megawatts (MW) of renewable energy sourced from a biogas facility in Candelaria, Quezon.
FQBC, a farmer-owned cooperative, operates a 1.4-MW biogas power plant that converts agricultural waste into clean energy using anaerobic digestion technology. The PSA, scheduled to take effect on June 26, 2026, will contribute to Meralco’s compliance with the Department of Energy’s Renewable Portfolio Standards (RPS), which mandates increasing RE usage among utilities.
“This agreement underscores our continued commitment to accelerate renewable energy procurement while supporting inclusive, locally driven energy solutions,” said Jose Ronald Valles, Meralco senior vice president and head of regulatory management. “We hope this encourages further investments in biogas projects that provide both energy and environmental benefits.”
The Candelaria plant offers sustainable waste management for Quezon’s farming communities while contributing to emissions reduction — aligning with national climate change mitigation efforts. Meralco and FQBC emphasized the dual economic and environmental gains of the project.
Pending review and approval by the Energy Regulatory Commission, the contract marks another step in Meralco’s push to integrate more RE into its supply portfolio. The utility has already secured 1,535 MW of RE capacity, surpassing its initial 1,500-MW target, and is working toward a 26 percent RE share by 2030.
Under the RPS, the annual RE requirement for power distributors increases by 2.52 percent, supporting the national goal of reaching 35 percent RE share in the energy mix by 2030 and 50 percent by 2040.
