Meralco signed a 20-year deal with FQBC to source biogas power, advancing renewable goals and supporting local agriculture.
The Manila Electric Company (Meralco) has entered into a long-term power supply agreement (PSA) with First Quezon Biogas Corporation (FQBC), marking a significant step toward promoting renewable energy (RE) in the Philippines. The agreement, signed for a duration of 20 years, will see Meralco sourcing 1.25 megawatts (MW) of renewable energy from FQBC starting July 26, 2026.
This PSA represents a majority share of the Candelaria, Quezon-based biogas plant’s 1.4 MW total capacity. Meralco emphasized the importance of this deal not only for its affordable baseload electricity supply but also for its strong environmental contribution, particularly in supporting agricultural communities. FQBC uses advanced anaerobic digestion technology to convert locally collected agricultural waste—mainly chicken manure—into clean and renewable energy. This process not only helps manage agricultural waste but also reduces greenhouse gas emissions while creating a sustainable source of electricity.
In an official statement, Jose Ronald V. Valles, Meralco’s Senior Vice President and Head of Regulatory Management, highlighted the broader impact of the partnership. “We hope that the signing of this PSA would pave the way for more investments in biogas technologies, which can significantly benefit local communities and the renewable energy sector at large,” Valles said. He also confirmed that the PSA will now be submitted to the Energy Regulatory Commission (ERC) for evaluation and approval, in line with regulatory protocols.
This collaboration is consistent with the Department of Energy’s (DOE) strategic efforts to promote the wider adoption of renewable energy sources in the country. The DOE has introduced a policy that requires distribution utilities, like Meralco, to obtain a portion of their power supply from renewable energy generators. This requirement is part of the government’s roadmap to increase the share of renewables in the national energy mix.
According to the DOE’s targets, renewable energy should account for 35 percent of the Philippines’ total energy mix by 2030 and further rise to 50 percent by 2040. Biogas, as a reliable and environment-friendly energy source, is being positioned as a key contributor to achieving these ambitious goals.
By partnering with a firm like FQBC, Meralco not only diversifies its energy portfolio but also helps accelerate the shift toward cleaner, more sustainable power sources. The move could also inspire other utilities and investors to explore biogas and other renewable options, thereby enhancing energy security and environmental sustainability across the country.
