BANGKOK, THAILAND – The Electricity Generating Public Company Limited (EGCO Group) has announced a significant achievement in the Philippine energy sector. Its subsidiary, Quezon Power (Philippines), Limited Co., owner and operator of the Quezon thermal power plant, successfully finalized a new 15-year Power Supply Agreement (PSA) for 400 megawatts (MW) with a prominent, yet unnamed, Retail Electricity Supplier on March 24, 2025. This landmark deal underscores the plant’s enduring role as a critical and reliable energy provider for the Luzon grid and secures a stable, long-term revenue stream for EGCO Group.
The signing of this new long-term contract represents a key milestone, reaffirming the Quezon power plant’s position as a cornerstone of energy stability in the Philippines’ largest and most populous island, Luzon. The agreement not only guarantees a continued supply of essential power to consumers via the retail electricity supplier but also solidifies the plant’s financial contribution to EGCO Group for the next decade and a half, ensuring consistent and predictable earnings from this key overseas asset.
This latest PSA effectively extends the operational relevance and commercial viability of the Quezon facility well beyond its original contractual framework. It signals strong market confidence in the plant’s operational capabilities and its importance within the competitive Philippine electricity market landscape.
Dr. Jiraporn Sirikum, President of EGCO Group, commented on the successful negotiation, emphasizing the strategic importance of the agreement. “The Quezon power plant has successfully acquired a new PSA for a long-term contract of 15 years,” she stated. “The new PSA marks the power plant’s ongoing efforts to enhance its service offerings and continue its presence in the Philippines electricity market.”
Dr. Sirikum further elaborated on the operational plans leading up to the commencement of the new agreement, highlighting the company’s commitment to reliability. “The power plant will undergo essential outage maintenance to prepare for the new PSA,” she explained. “This strategic move ensures that the power plant will seamlessly continue its commercial operations and provide stability and reliability to the Luzon’s grid. Meanwhile, it will consistently generate revenue for EGCO Group in the long term.” This planned maintenance underscores a proactive approach to asset management, ensuring the plant operates at peak efficiency and availability throughout the duration of the new contract.
EGCO Group holds full ownership (100% stake) in the Quezon thermal power plant through its subsidiary. Strategically located in the Municipality of Mauban, Quezon Province, on Luzon Island – the economic and demographic heartland of the Philippines – the facility has been a vital part of the nation’s energy infrastructure since commencing commercial operations in May 2000.
Its initial operations were governed by a 25-year power purchase agreement (PPA) with the Manila Electric Company (Meralco), the country’s largest electricity distributor. That foundational agreement established the plant’s role in the market. Now, with the original PPA nearing its conclusion, this new 15-year PSA secures the plant’s future contribution.
Throughout its nearly quarter-century of operational history, the Quezon power plant has played a crucial role in bolstering the Philippines’ energy security. Its consistent performance has been particularly significant during periods when the country faced challenging power supply shortages, demonstrating its capability as a dependable source of baseload power for the Luzon grid. The successful negotiation of the new PSA serves as a testament to this proven track record of reliability and operational excellence, valued by participants in the Philippine energy market.
Beyond its core function of power generation, the Quezon power plant has consistently demonstrated a strong commitment to sustainable development and harmonious co-existence with its surrounding community, society, and the environment throughout its years of operation. Management has placed high importance on corporate social responsibility (CSR), initiating and supporting various programs focused on enhancing local well-being.
These initiatives span critical areas such as education and health promotion, alongside skill and career development opportunities for residents, improvements to basic infrastructure, and dedicated biodiversity promotion efforts. Notable examples of its environmental stewardship include long-running sea turtle conservation and mangrove forest rehabilitation projects within the Mauban area, reflecting a holistic approach to its operations.
The successful conclusion of this new 15-year, 400MW PSA marks a significant strategic success for EGCO Group and its Quezon Power subsidiary. It not only secures the plant’s operational future and its vital contribution to the Philippine energy landscape but also reinforces EGCO Group’s long-term growth trajectory through predictable revenue generation from its international portfolio.
This development firmly anchors the Quezon power plant’s presence in the Luzon grid for the foreseeable future, promising continued reliability for energy consumers and sustained value creation for EGCO Group’s stakeholders. The agreement highlights EGCO’s ability to manage its assets effectively and navigate complex energy markets to secure long-term value.
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