Meralco to bid for 1,200MW coal plant offtake in early 2026

Meralco PowerGen Corp. (MGEN) is preparing to bid in early 2026 for a competitive selection process (CSP) or baseload capacity auction to secure an offtake agreement for its 1,200-megawatt coal power plant in Atimonan, Quezon.

The company is coordinating with the Department of Energy (DOE) to determine the best strategy for securing a market for the plant's capacity.

MGEN President and Chief Executive Officer Emmanuel V. Rubio stated that the company has begun preparing to participate in either a CSP or a baseload capacity auction.

Offtake agreements are crucial for generation companies as they guarantee revenue and ensure the long-term viability of power facilities.

A CSP is a government-mandated bidding process where distribution utilities and electric cooperatives select power suppliers based on the most cost-effective rates, while auctions are market-based processes designed to secure offtake agreements.

The MGEN coal plant, developed by its subsidiary Atimonan One Energy, Inc., is expected to begin operations and deliver power by February 2030.

Despite the government's 2020 moratorium on new coal-fired power projects, the Atimonan project obtained certification confirming it remains outside the moratorium's coverage, allowing it to continue securing permits.