The Department of Energy (DOE) has approved Manila Electric Co.’s (Meralco) updated Power Supply Procurement Plan (PSPP), enabling the utility to procure nearly 3,000 megawatts (MW) of power from 2026 to 2032 through a Competitive Selection Process (CSP).
The DOE confirmed its approval in a letter dated April 11, 2025, authorizing Meralco to move forward with five major CSPs scheduled for rollout this year.
The procurement plan includes a total of 2,976 MW, with 2,126 MW dedicated to renewable energy across both baseload and mid-merit capacities, supporting the Philippines’ target of 35% renewable energy in the power mix by 2030.
For renewable baseload supply, Meralco will procure 200 MW from January 2026 to January 2030, and 1,426 MW from February 2026 to February 2046, with bid invitations expected to be published within April 2025.
For conventional baseload supply, the plan includes 600 MW for procurement in May 2025, covering February 2028 to February 2043, and another 900 MW scheduled for September 2025, covering February 2030 to February 2045.
The mid-merit supply plan includes 300 MW and 150 MW with delivery start dates in 2028 and 2029, respectively, both scheduled for publication in May 2025.
Further ahead, Meralco will procure 300 MW of conventional baseload by 2031 for delivery starting in 2033, and 500 MW of renewable mid-merit power in 2030 for delivery starting in 2032.
The planned mix aims to strike a balance between renewable and conventional energy sources, ensuring system reliability for Meralco’s more than 8 million customers in Luzon.
The staggered procurement schedule is also designed to maintain stable power rates and avoid supply shortfalls as demand rises over the next decade.
Meralco’s PSPP adheres to the DOE’s policy requiring distribution utilities to secure power through transparent and competitive bidding processes to ensure cost-effective electricity.
The CSP requirement, reinforced by the Energy Regulatory Commission (ERC), aims to prevent overpricing and reduce opportunities for non-competitive contracts in the power sector.
The DOE’s approval of the PSPP signals government backing for Meralco’s roadmap, particularly in meeting the country’s growing power demand while accelerating the shift to clean energy.
The Philippines is targeting a 35% renewable energy share by 2030 and 50% by 2040, under the National Renewable Energy Program.
Meralco’s integration of more renewable supply into its portfolio contributes to these national targets, while conventional energy sources remain necessary for baseload reliability and system stability.
