MGEN eyes Mindanao plant privatization as power demand rises

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Mindanao plant privatization

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Meralco PowerGen Corp. is considering participation in the privatization of the 232-MW Misamis Oriental coal plant, as Mindanao electricity demand rises.
The 232-MW plant, operational since 2006 and set to transfer in 2031, is the last government-owned coal asset in Mindanao, currently operated by SPI Power.
MGEN is developing a 1,200-MW coal project in Quezon, exempt from the 2020 coal moratorium, aiming for completion by 2030 to serve at least five million Luzon households.

Mindanao asset sale draws generation interest

As reported by BusinessWorld Online, Meralco PowerGen Corp. is open to opportunities tied to the planned privatization of a 232-megawatt coal-fired power plant in Misamis Oriental. MGEN President and Chief Executive Officer Emmanuel B. Rubio told reporters the company has not yet evaluated the asset in detail, but sees potential in Mindanao as electricity demand grows.

State-run Power Sector Assets and Liabilities Management Corp. is working to privatize the facility, which is the last remaining government-owned coal power plant in the region. The baseload plant sits on a 55-hectare site within the PHIVIDEC Industrial Estate and started commercial operations in 2006 under a 25-year build-operate-transfer arrangement with National Power Corp. and PSALM that runs until 2031.

The plant is currently operated by SPI Power, Inc., formerly known as STEAG State Power, Inc. SPI Power is 85% owned by Aboitiz Power Corp. and 15% by La Filipina Uy Gongco Corp.

MGEN expands capacity amid coal policy carve-out

MGEN says rising electricity demand is creating room for additional generation capacity. As of July 2026, the company has total net saleable capacity of 5,069.7 MW from conventional and renewable sources, along with 56.4 megawatt-hours of battery energy storage capacity.

The company is also developing a 1,200-MW coal-fired power project in Quezon province to help meet growing demand on Luzon. Its renewed push in coal follows confirmation by the Department of Energy that the project is exempt from the 2020 coal moratorium, which froze approvals for greenfield coal plants as the government sought to raise the share of renewable energy in the country's power mix.

Once the Quezon plant is completed in 2030, it is expected to generate enough electricity to serve at least five million households. Potential participation in the Mindanao privatization would add to MGEN's options as power producers position for demand growth across the Philippines.

In our earlier article on the Philippines’ planned sovereign bond reforms and prospective inclusion in a major emerging-market bond index, we explained how these steps could broaden the investor base and improve liquidity for peso-denominated government securities. We also noted that cheaper borrowing and stronger inflows are not automatic and, on their own, do not guarantee more productive investment—gains still depend on fiscal credibility, deeper domestic capital markets, and structural improvements that lower operating costs for businesses.

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