GRI 102-11, 103-2, 103-3, 203-1, UNGC Principles 7, 8, & 9
MPIC is committed to the goal of transitioning to a low-carbon business model of its existing portfolio in power, water, and mobility in response to global calls for decarbonization. We are determined to reduce our emissions through science-based targets and to expand our generation and use of renewable energy to show our commitment to this challenging transition. In 2021, MPIC was the first company in the Philippines and in Asia to sign the statement of support for the Accounting for Sustainability (A4S) Net Zero initiative.
In the last three years, we have undertaken programs that integrate climate action and sustainability into our current investment and corporate strategies. With our significant investments in the energy sector, we understand the impact of our existing businesses in power distribution and power generation on climate change and the planet. Globally, a fundamental shift is happening in terms of rethinking corporate environmental stewardship, compelling companies to reevaluate how they produce, access, and use energy. To encourage the rapid shift to renewables, the Philippine government declared a moratorium on coal-based plants, including those using high efficiency, low emission (HELE) technologies. MPIC understands that the need to decarbonize has become urgent and is in fact crucial in determining our future growth prospects.
We are ready to scale up our current investments in renewable energy production in the next five years, accelerating previous plans and construction of pipelined projects in this fast-growing energy sector. MPIC is best positioned to increase investments in developing renewable energy sources given the advances in cost-efficient renewable technologies and the opportunity to provide clean and green energy to the communities that we serve. Meanwhile, MPIC and its operating units have expanded the utilization of renewable energy, particularly solar energy, in our buildings and daily operations.
Meralco: Clean energy transition
The renewable energy market is growing in the Philippines due to the rise of cost-efficient clean technologies, increasing state regulation of fossil fuels, and the sustained global push for energy in response to climate change. As one of the largest power corporation in the country, Meralco has welcomed this opportunity to transition to the use of clean and low carbon energy to meet the country’s growing power demand.
In the short term, Meralco has committed to securing 1,500 MW in renewable energy through Power Supply Agreements, progressively increasing the use of renewables in its energy mix over the next five years. In 2021, Meralco increased its purchase of green energy, boosting the share of renewables from 0.34% in 2020 to 0.64% in the current energy supply mix.
Meralco’s renewable power generation portfolio is driven mainly by its subsidiaries Meralco PowerGen Corporation (MGen) and Spectrum. Both companies are engaged in developing Meralco’s solar power portfolio with MGen focused on constructing utility-scale power plants and Spectrum focused on custom solar PV solutions for business and residential consumers.
Through MGen, Meralco intends to build 1,500 MW of renewable energy capacity by 2027. It has invested P4.25 billion in developing the 50-MW BulacanSol solar power plant in San Miguel, Bulacan, which began commercial operations in 2021, and P674 million in a 78MW solar facility in Baras, Rizal. By the end of 2021, BulacanSol produced 66,106 MW of clean energy, increasing Meralco’s renewable energy generation portfolio from zero in 2020 to 0.5% in 2021.
MPTC: Decarbonization of transport sector through e-mobility
MPTC seeks to transition the company’s entire fleet of traffic and security vehicles into environment-friendly electric vehicles (EV). As each vehicle in the fleet hits its end of life, MPTC will replace them with EVs. In December 2021, MPTC unveiled its first EV for use by its security team at the MPT South Hub for CALAX.
MPTC’s new fleet of EVs will be recharged through charging stations that will be placed strategically in parking lots and rest areas along highways. These charging stations are also designed to encourage customers to transition to the use of EVs themselves. It has allocated investment to MPT Mobility, a new subsidiary tasked with installing charging stations.
LRMC: Decarbonization through renewable energy investments
LRMC aims for net zero by as early as 2030. To achieve this ambitious goal, it has fast-tracked the adoption of renewable energy across its light rail network and began making investments to convert power purchase and supply agreements to exclusively clean forms of energy only. It installed solar PV panels at four substations and in its Paranaque satellite depot in 2021, which generated a total of 604.8 kWp from renewable sources and reduced Scope 1 GHG emissions by 24% and Scope 2 GHG emissions by 25% from recorded levels in 2019.
The company consumed 6,335 mWh of renewable energy and 32,189 mWh of non-renewable energy in 2021 to support its operations. LRMC is now working to reverse this ratio in the next few years, ultimately relying solely on clean energy to run its train network.
LRMC seeks to further reduce its emissions through the adoption of energy-saving designs in its depot lighting and ventilation, reforestation of a 2-hectare site in the Ipo Watershed with 800 indigenous trees under Maynilad’s Plant for Life program, diversion of tons of residual plastics from landfills, and expansion of its Bikeways Project. These actions contributed 29,483.4 kgCO2e total savings in carbon emissions in 2021.