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Meralco PowerGen Corp. (MGEN) is considering a possible bid for a 232-megawatt (MW) coal-fired power plant in Misamis Oriental as rising electricity demand in Mindanao creates opportunities for additional generation capacity.
MGEN President and Chief Executive Officer Emmanuel B. Rubio said the company was open to evaluating the facility, which the government is preparing to privatize through the Power Sector Assets and Liabilities Management Corp. (PSALM).
“Could be. It’s an opportunity,” Rubio told reporters, adding that other companies could also be interested in the asset.
The potential acquisition would give MGEN, the power generation arm of Manila Electric Co. (Meralco), an opportunity to expand its presence in Mindanao, where electricity consumption is projected to increase in the coming years.
Rubio said the region had untapped demand that could attract investors seeking to expand their generation portfolios.
“I think there’s an opportunity in Mindanao. There’s pent-up demand in Mindanao,” he said.
PSALM Privatization
The plant, located on a 55-hectare site within the PHIVIDEC Industrial Estate in Villanueva, Misamis Oriental, is Mindanao’s first coal-fired power facility and the last remaining government-owned plant of its type.
PSALM is preparing the asset for privatization and has sought consultancy services to conduct an independent financial valuation and establish a reserve price ahead of the competitive bidding process.
The valuation will help determine the plant’s financial worth as the government moves forward with the sale.
The facility currently operates under a long-term power purchase arrangement, with PSALM purchasing its electricity output during the contract period. The agreement is scheduled to expire in November 2031, when ownership of the plant is expected to revert to PSALM under the existing arrangement.
The plant began commercial operations in 2006 under a 25-year build-operate-transfer agreement involving the National Power Corp. and the project developer.
It is currently operated by SPI Power, Inc., formerly known as STEAG State Power, Inc. Aboitiz Power Corp. holds an 85% stake in SPI Power, while La Filipina Uy Gongco Corp. owns the remaining 15%.
Rubio is familiar with the facility, having previously served as AboitizPower’s president and chief executive officer before moving to MGEN.
Mindanao Demand To Climb
The potential sale comes as Mindanao’s electricity requirements continue to rise, increasing the importance of securing adequate generation capacity to support the region’s economic activity.
Data from grid operator National Grid Corp. of the Philippines showed that Mindanao’s peak demand reached 2,572 MW, compared with available capacity of 2,997 MW.
The Department of Energy projects peak demand to reach 2,975 MW by December and increase further to 3,209 MW by 2027.
To help meet the additional requirements, 168 MW of committed generation projects are scheduled for completion by the end of this year, with another 252 MW expected to come online next year.
The figures point to the need for timely capacity additions as demand approaches the region’s available supply. The privatization of the 232-MW coal plant could therefore attract investors looking to participate in Mindanao’s power market, although the eventual transaction will depend on the bidding process and the asset’s valuation.
The government had previously explored early retirement options for the facility through a carbon-credit trading mechanism supported by the Asian Development Bank. It has since proceeded with preparations for a competitive tender, which would allow prospective buyers to assess the asset while maintaining the plant’s role in the electricity supply system.
MGEN Expands Generation Portfolio
MGEN’s possible interest in the Mindanao facility comes as it pursues other generation projects to meet electricity requirements in different parts of the country.
As of July 2026, the company had 5,069.7 MW of net saleable capacity from conventional and renewable energy sources, along with 56.4 megawatt-hours of battery energy storage capacity.
It is also developing two coal-fired power projects: the 73-MW Toledo plant in Cebu and the 1,200-MW Atimonan facility in Quezon province.
The Department of Energy has confirmed that both projects are exempt from the government’s 2020 moratorium on new coal-fired power plants. The policy halted approvals for greenfield coal projects as the Philippines sought to increase the share of renewable energy in its generation mix.
The Atimonan project is targeted for completion in 2030 and is expected to produce enough electricity to serve at least five million households, according to the company.
A potential acquisition in Mindanao would add another possible investment to MGEN’s expansion plans.
Source:
https://www.philstar.com/business/2026/10/26/2565639/mgen-mulls-bid-232-megawatt-mindanao-coal-plant
https://mb.com.ph/2026/10/26/mgen-weighs-bid-for-232-mw-mindanao-coal-plant
