MGEN Thermal, the thermal power generation arm of Meralco PowerGen Corp. (MGEN), has restored a 278.4-megawatt (MW) generating unit of subsidiary Panay Energy Development Corp. (PEDC) ahead of schedule, restoring a key source of electricity for Panay Island and parts of the Visayas.
In a statement on Thursday, the company said Panay Energy synchronized to the grid Unit 3 of its coal-fired power plant in Iloilo City after completing repairs following an equipment failure in May 2026.
“The successful return [to the grid] of PEDC Unit 3 reflects the strength of our engineering capabilities, disciplined execution, and the dedication of our people and partners,” MGEN Thermal President and CEO Arnel Santos said.
MGEN said that before the unit was cleared to resume operations, its restoration involved engineering assessments, forensic investigation, equipment repairs, extensive testing, as well as coordination with the National Grid Corp. of the Philippines (NGCP), original equipment manufacturers, independent technical experts, and contractors.
“Beyond restoring generating capacity, this recovery has further strengthened our engineering governance and asset management practices, enabling us to continue delivering safe, reliable, and dependable power to the communities and industries we serve,” Santos added.
Panay Energy said it would continue to monitor the unit’s performance while carrying out the remaining engineering enhancements identified during the recovery process.
The company added that lessons from the restoration would be integrated into MGEN Thermal’s engineering standards and asset management framework to further improve the reliability of its generating fleet.
Panay Energy owns and operates a 278.4-MW circulating fluidized bed (CFB) coal-fired power plant in Iloilo City that supplies electricity to Panay Island and selected areas in the Visayas.
A CFB coal-fired plant operates at relatively cooler temperatures of between 800 and 900 Celsius compared to typical coal power plants while capturing up to 95 percent of sulfur dioxide directly in the furnace. CFB boilers are also said to significantly lower thermal nitrogen oxide emissions.
Shares of MGEN parent Manila Electric Co. on Thursday dropped P13.00, or 2.22 percent, to close at P572 each.