As part of its efforts to expand its service in Quezon province and provide reliable electricity to an off-grid community, the Manuel V. Pangilinan-led Manila Electric Co. (Meralco) is set to fully energize Cagbalete Island in Mauban town.

In a statement, Meralco said it has signed a microgrid service contract with the Department of Energy (DOE) and National Power Corp. (Napocor) for a hybrid microgrid system project, which would enable the distribution utility (DU) to provide 24/7 electricity to about 1,000 residential and commercial consumers.

The island’s power supply would be sourced from renewable energy, a battery energy storage system (BESS), and conventional power generation.

The contract will also allow subsidies for the project under the universal charge for missionary electrification (UCME), which would support funding requirements and ease the financial burden on island residents.

“The ERC [Energy Regulatory Commission] will determine the final electricity rates in the next phase to ensure affordability for Cagbalete residents and businesses,” Meralco stated.

Once operations begin by December, the Cagbalete microgrid project will become the country’s largest microgrid system, with a full build-out capacity of a 2.8-megawatt-peak (MWp) solar photovoltaic (PV) system, a 6.69 MW-hour (MWh) BESS, and four sets of 0.25-MW diesel backup over a three-year period.

Meralco Executive Vice President and Chief Operating Officer (COO) Ronnie Aperocho said the signing brings Meralco closer to its goal of providing sustainable energy solutions.

“This is more than electricity—it’s about giving the light of love, joy, and hope to our fellow Filipinos in Cagbalete Island. Through this collaboration, more households will have a brighter Christmas, and soon, the entire island will benefit from stable and reliable electricity that will power their lives for the better,” he said.

The electrification project is also expected to help offset up to 42,000 metric tons (MT) of carbon dioxide emissions.

Napocor President and Chief Executive Officer (CEO) Jericho Nograles lauded Meralco’s efforts to develop and expand its electrification services in Cagbalete.

“The responsibilities outlined in the agreement: design, construction, operation, billing, maintenance, guaranteed dependable capacity, and the 24/7 delivery of electricity to all existing and future households; these are not light commitments. They reflect a strong confidence in the mission and a readiness to support communities that rely on us for progress,” he said.

Energy Secretary Sharon Garin likewise emphasized the project’s importance, saying, “Cagbalete Island is proof that off-grid communities do not have to be left behind. With the right policies and partnerships, we can power inclusive growth, support local industries, and give our people the tools they need to build a better future.”