MERALCO PowerGen Corp. (MGen), a subsidiary of Manila Electric Co., has signed a strategic agreement with Saudi Arabia-based firm ACWA Power to explore and develop renewable energy projects in the Philippines and Southeast Asia.
The agreement was formalized last week on the sidelines of the Association of Southeast Asian Nations’ (Asean) summit in Kuala Lumpur, Malaysia, MGEN said in a statement on Wednesday.
Under the agreement, ACWA Power and MGen will collaborate to jointly develop renewable energy projects, particularly in solar energy.
The parties declined to share an initial investment cost and target capacity that will likely expand MGen’s footprint outside of the Philippines.
“This partnership marks a notable step forward in our goal to expand MGen’s renewable energy footprint by leveraging ACWA Power’s global expertise and cost leadership in solar PV development,” Emmanuel Rubio, MGen president and chief executive officer, said.
ACWA Power Chief Information Officer Thomas Brostrom said the agreement represents the company’s entry into the Philippine market for possible expansion projects across Southeast Asia.
“…This collaboration combines our global expertise in renewable energy with MGen’s local knowledge, enabling us to deliver reliable, affordable, and sustainable power solutions that support the country’s shift towards a low-carbon future,” Brostrom added.
MGen currently has assets with a total capacity of 4,953 megawatts (MW) across the country, operating a diverse portfolio of power generation assets utilizing both renewable energy and thermal technologies.
The company also has stakes in Pacific Light Power Pte. Ltd., which operates liquefied natural gas assets in Singapore.
On the other hand, ACWA Power has power projects located globally with a capacity of 78,800 MW. It is also considered the world’s largest private water desalination company while also being a pioneer in green hydrogen.
