MGEN Pins Last Hope For Atimonan Coal Plant On Meralco Power Deal

Meralco PowerGen Corp. (MGEN) is banking on a planned 900-megawatt (MW) baseload power supENply contract with its parent, Manila Electric Co. (Meralco), to revive its long-delayed 1,200-MW coal-fired power plant in Atimonan, Quezon, in what its chief executive described as the project’s last opportunity to move forward.

MGEN president and chief executive Emmanuel Rubio said the company intends to participate in Meralco’s competitive selection process (CSP), which could provide the long-term electricity buyer needed to make the proposed Atimonan Energy Power Plant financially viable.

“Hopefully, when we win it, we can build it. This is the last opportunity for MGEN to execute Atimonan,” Rubio said.

The project will remain an ultra-supercritical coal-fired facility, with MGEN ruling out another shift to liquefied natural gas (LNG) technology. The company has repeatedly revised its plans for the project over the past decade, but securing a power supply agreement (PSA) is now central to its efforts to proceed with construction.

900 MW Of Baseload Supply Sought

Meralco recently opened bidding for up to 900 MW of additional baseload electricity supply under a 15-year PSA, allowing MGEN to position the Atimonan project as a potential source of power for the utility’s franchise area.

Under the terms of the tender, the winning generation company must deliver an initial 600 MW beginning Feb. 26, 2031, followed by another 300 MW starting Feb. 26, 2032.

Atimonan One Energy Inc. (A1E), the project company under MGEN, plans to submit an expression of interest by Oct. 15. The pre-bid conference is scheduled for Nov. 6, while final offers must be submitted by Dec. 9.

The proposed contract would provide a long-term market for the electricity generated by the winning supplier. Such an arrangement is particularly important for large power projects, which require substantial capital investment and dependable revenue prospects to support financing and development.

Winning the contract could help unlock a project that has remained on MGEN’s drawing board despite years of planning and regulatory work.

Coal Technology Retained

The Atimonan project has undergone several changes in fuel technology since it was first proposed. Initially envisioned as an LNG-fired facility, it was later redesigned as a coal plant and received environmental clearance in 2015. Regulatory hurdles subsequently delayed development, prompting MGEN to reconsider LNG before eventually returning to its coal-fired plan.

Rubio said the company no longer sees a compelling reason to convert the project to gas, arguing that an LNG-based version would struggle to compete.

“Atimonan will be coal. If we won’t win it with coal now, I don’t think Luzon needs another LNG terminal,” he said.

MGEN plans to concentrate its gas-fired power expansion in Batangas instead, keeping Atimonan focused on coal technology.

The facility is designed to use high-efficiency, low-emission (HELE) ultra-supercritical technology, which operates at higher temperatures and pressures to improve fuel efficiency and reduce emissions per unit of electricity generated compared with less efficient coal plants.

Although the project was exempted from the Department of Energy’s coal moratorium, the agency required the plant to retire by 2050 as a condition of its clearance.

Capacity Implications

MGEN has projected that the 1,200-MW facility could supply enough electricity for at least five million households and meet around 7% of Luzon’s total power demand.

Project estimates also point to about 6,000 construction jobs and 300 permanent positions once the plant becomes operational, potentially providing employment during construction and throughout its operating life.

The project’s proposed capacity would make it a significant addition to Luzon’s generation fleet, where coal-fired plants continue to provide much of the baseload supply needed to meet electricity demand. Baseload power refers to the continuous electricity required to serve underlying consumption, complementing generation sources whose output can vary with weather conditions.

However, the project’s next steps will depend heavily on the outcome of Meralco’s procurement process. Without a sufficiently secure market for its output, advancing a capital-intensive facility of this scale could prove difficult.

The upcoming tender therefore represents more than an opportunity to supply MGEN’s parent utility. It could determine whether the long-planned Atimonan coal plant finally advances toward construction or remains stalled after years of changes to its development strategy.

Source:

https://www.philstar.com/business/2026/10/12/2562495/mgen-makes-final-push-atimonan-coal-plant

https://mb.com.ph/2026/10/12/mgen-eyes-meralcos-900-mw-baseload-deal-to-advance-atimonan-coal-plant

https://bilyonaryo.com/one-last-shot-men-eyes-900-mw-meralco-deal-to-revive-atimonan-coal-project/