Philippine-based Meralco PowerGen Corp ( MGen ) is set to expand its coal-fired power capacity in Cebu province, 820 kilometres south of Manila, with a US$150 million investment.

The company says the majority of the funds will go towards the development of a 73-megawatt coal project in Toledo City, Cebu. The coal project is set to move forward despite the Philippines’ ongoing coal moratorium, since it was approved and committed prior to the enforcement of the ban. 

MGen is a wholly-owned subsidiary of Manila Electric Company ( Meralco ), the Philippines' largest electric distributor. MGen serves as the company’s power generation arm. 

MGen president and chief executive officer Emmanuel Rubio told local reporters that the Toledo project is set to break ground in the first quarter of 2026, with about 1 billion pesos ( US$17 million ) earmarked for the project for 2026. The Toledo project is scheduled for completion by October 2028. 

MGen has earmarked the plant's output for sale to MGen RES, MGen’s retail electricity supply arm.

In addition to the Toledo project, MGen has also obtained clearance for its planned 1,200MW Atimonan coal plant in Quezon province, while also continuing work on its massive Terra Solar project in Nueva Ecija and Bulacan, slated to be the world’s biggest integrated solar and battery energy storage project.

However, unlike the Toledo project, MGen is committed to transitioning the Atimonan coal plant from coal to an alternative fuel source.