The Philippine Economic Zone Authority (PEZA) sealed a new partnership with power utility giant Manila Electric Co. (Meralco) that aims to bring cheaper electricity to ecozones across the country in a bid to attract new investments.

In a statement, the PEZA said it has formalized a strategic partnership with the Pangilinan-led Meralco through a memorandum of understanding (MOU) signed on Dec. 3.

“PEZA envisions ecozones that are smart, sustainable, and globally competitive—and to achieve this, power reliability and access to renewable energy sources are non-negotiable,” said PEZA Director General Tereso Panga

“With this partnership, we are confident that PEZA and Meralco will strengthen our ecozone system and ensure the power needs of our locators,” he added.

Under the Special Economic Zone Act and CREATE MORE, the PEZA is authorized to register power, water, telecommunications, and environmental management facilities, granting them access to fiscal and non-fiscal incentives.

Through distributed energy systems, such as those in Meralco, ecozones can significantly lower power costs.

The tariff design of both laws, which is free of stranded costs, further enables power rates to compete with subsidized electricity prices in neighboring Southeast Asian countries.

Panga said this addresses the long-standing perception of high electricity costs in the concern, a concern that foreign investors have long flagged.

Under the agreement, Meralco may design, build, own, and operate power distribution projects within PEZA-managed ecozones.

These would still be subject to the necessary permits, approvals, and definitive agreements.

“With this partnership, PEZA will be able to adequately meet the power requirements of manufacturing investors within the public ecozones that the agency manages,” Panga said.

“As new ecozones continue to rise across the country…Meralco’s early involvement will be crucial in powering the next generation of smart eco-industrial zones,” he said.

Panga said this is critical to the country as it shifts into more advanced manufacturing, data centers, logistics hubs, and other high-value industries.