The Philippine Economic Zone Authority (PEZA) and Meralco have signed a strategic partnership to strengthen power reliability across the ecozones.
The memorandum of understanding (MOU) was signed on Dec. 3, 2025, by PEZA director-general Tereso Panga and Meralco chairman and chief executive Manuel Pangilinan at the Meralco head office.
Under the agreement, Meralco is authorized to design, build, own and operate power distribution projects within PEZA-managed ecozones, pending permits, approvals and definitive agreements.
The framework is key to PEZA’s push for reliable, future-ready infrastructure necessary for advanced manufacturing, data centers, logistics hubs and other high-value industries.
The partnership aligns with PEZA’s shift toward low-carbon, energy-efficient eco-industrial park models that comply with circularity and Environmental, Social and Governance (ESG) standards.
“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. With this partnership, we are confident that PEZA and Meralco will strengthen our ecozone system and ensure the power needs of our locators,” said Panga.
The PEZA and CREATE MORE laws allow PEZA to register embedded power, water, telecom and environmental management facilities with fiscal and non-fiscal incentives.
By promoting distributed energy systems, including embedded power generation and distribution, PEZA can significantly lower electricity costs in its ecozones. A straightforward tariff structure, free from stranded costs, is designed to allow power rates to approximate subsidized electricity prices in ASEAN, boosting the country’s investment competitiveness.
“The single-largest electricity demand in these zones currently reaches about 80 MW per month. Through embedded energy solutions and new sources – such as solar generation within the ecozones—we can deliver sustainable, competitive and reliable electricity that reduces business costs for our locators and attracts more investors to the Philippines,” Panga said.
The partnership is particularly essential as new ecozones take shape, including in Baguio, Pantao and the Palawan Mega-Ecozone, where Meralco’s early involvement will be vital in powering next-generation smart zones.
