PhilStar 65, Coal power and the Philippine’s energy conglomerates

Coal power and the Philippine’s energy conglomerates

ENERGY, INFRA AND ECONOMICS - Bienvenido Oplas Jr. - The Philippine Star

October 30, 2025 | 12:00am

https://www.philstar.com/business/2025/10/30/2483435/coal-power-and-philippines-energy-conglomerates

 

Coal in particular is a very useful energy source for industrialization, at least three proof: One, UK developed the world’s first coal plant in 1882 and coal powered UK, then Germany, US, other countries to fast industrialization. Two, total world coal generation keeps rising from 3,748 terawatt-hours (TWH) in 1985 to 7,361 TWH in 2005 and 10,613 TWH in 2024. And three, China’s great leap from poverty to industrialization was largely powered by coal, only 261 TWH in 1985 to 1,980 TWH in 2005 and 5,828 TWH in 2024 (55 percent of world total).

 

Energy is development. More energy especially from stable, reliable and dispatchable sources means more leeway on the kind of modernization path a country can take.

 

Coal in particular is a very useful energy source for industrialization, at least three proof: One, UK developed the world’s first coal plant in 1882 and coal powered UK, then Germany, US, other countries to fast industrialization. Two, total world coal generation keeps rising from 3,748 terawatt-hours (TWH) in 1985 to 7,361 TWH in 2005 and 10,613 TWH in 2024. And three, China’s great leap from poverty to industrialization was largely powered by coal, only 261 TWH in 1985 to 1,980 TWH in 2005 and 5,828 TWH in 2024 (55 percent of world total).

 

With this background, I can think of four Philippine conglomerates with high energy footprints.

 

First, Meralco and its power generation subsidiary, Meralco PowerGen Corp. (MGen). They have a diverse portfolio from thermal (coal and gas) to renewables. I checked the MGen website, they have a total of 1,389 MW of coal capacity, thousand plus MW in gas plants, and several hundreds MW of solar.

 

Just last week, MGen received many awards and recognition at the 2025 Asian Power Awards held in Kuala Lumpur, Malaysia. The four awards are: CEO of the Year for MGen president and CEO Emmanuel Rubio; Power Plant Upgrade of the Year for its Baras Solar project in Rizal; Fast-Track Power Plant of the Year (Gold) and Power Plant Upgrade of the Year, for Singapore-based subsidiary, PacificLight Power Pte Ltd (PLP).

 

I think that “CEO of the Year” award for Mr. Rubio is very important, a recognition of his leadership in significantly expanding MGen’s energy portfolio and power generation business. These include MTerra Solar project, the world’s largest integrated solar photovoltaic (PV) and battery energy storage facility once completed; the country’s first integrated liquefied natural gas (LNG) complex in Batangas; other battery storage projects.

 

I saw PLP plant in Singapore last year along with several local media, I was impressed – huge 830 MW of LNG plants plus construction of 100 MW fast-start plant and occupying only 13 hectares, just 0.02 percent of Singapore’s total land area. So PLP’s two awards have helped enhanced Singapore’s grid resilience while expanding parent company MGen’s financial muscle.

 

Second, Aboitiz Power Corp. (AP). I checked their website, they have 4,269 MW of coal capacity (3,476 MW in Luzon, 493 MW in Visayas and 300 MW in Mindanao), plus 442 MW of oil peaking plants, and engagement in chromite gas in Batangas in partnership with MGen and San Miguel Corp. (SMC).

 

The largest coal plant in the Philippines is GN Power Dinginin (GNPD) in Mariveles, Bataan, owned by AP. It is impressive – 1,336 MW and occupying only 60 hectares, no black smoke that we often see in the web, a high efficiency and low emission (HELE) coal plant that serves 30 electric cooperatives and private distribution utilities plus two RES.

 

Some climate activists demonize it but consider this: In 2024 alone, China built 94,000 MW of coal capacity. This is equivalent to 70 times the size of GNPD, or China was building one GNPD-size coal plant every five days on average. First half of 2025, China has commissioned and approved 25,000 MW of coal plants, this is equivalent to one GNPD-size coal plant every 10 days.

 

Last week, AP through its subsidiary 1882 Energy Ventures has launched Voltai as the first B2B motorcycle battery swap business in the Philippines. Unlike regular EVs that need to go to charging stations, this system is unique because a battery can be removed then swapped with newly charged battery and the motorcycle can quickly go again. So businesses in logistics, food and drinks delivery, ride-hailing services will benefit. Voltai leases their EVs and batteries for a fixed fee, shielding consumer businesses from rising vehicle and maintenance costs. Good project.

 

Third, SMC through its subsidiary San Miguel Global Power (SMGP). I checked their website, they have 3,494 MW of coal plants, plus LNG plants in partnership with MGen and AP, plus big hydro power plants, nice.

 

Four, National Grid Corp. of the Philippines (NGCP). Not into power generation but power transmission nationwide and some 80 percent of the Philippines’ power generation is from stable, reliable, dispatchable coal and gas, both from indigenous Malampaya gas and imported LNG.

 

Metro Pacific Investment Corp., the mother company of Meralco and MGen is also into toll roads, telecom, hospitals, agribusiness, real estate. Aboitiz Equity Ventures, the mother company of AP is also into agribusiness, airports, banking, real estate and industrial zones. SMC is also in toll roads, food and beverage manufacturing, airports. Synergy Grid and Development Philippines Inc. (SGP) that partly owns NGCP, is headed by Henry Sy Jr. who is also into many big malls nationwide, banking, residential condos, other businesses.

 

So those conglomerates have other companies and businesses that require 24/7/365 electricity. It is important that they are into power generation and transmission that sustain those big companies nationwide towards Philippine modernization, and create millions of jobs to Filipinos,

 

Last week, I also attended the Pandesal Forum with Rep. Arthur Yap of Murang Kuryente party-list as lone speaker. I like a number of his advocacies including the use of nuclear power for off-grid islands and provinces to reduce power costs there, and remove or drastically reduce that universal charge for missionary electrification (UC-ME) for on-grid customers. But I do not like his proposal to abolish VAT on electricity. No, we better reduce VAT rate and remove VAT-exemption of many sectors to raise more revenues, instead of adding VAT-exempt products like electricity.