THE PHILIPPINES on Thursday kicked off construction on a P200 billion solar and battery storage project expected to supply power to more than two million households by 2027.
President Ferdinand R. Marcos, Jr. led the pioneering Meralco Terra (MTerra) Solar project, which consists of a 3,500 megawatt peak (MWp) solar power plant and a 4,500 megawatt hour (MWh) battery energy storage system in Nueva Ecija and Bulacan.
Once fully operational in 2027, the project would supply 3,500 megawatts of solar power to the Luzon grid, Mr. Marcos said in a speech, adding that it would be the “world’s largest integrated solar and battery storage facility” .
“A 13-kilometer, 500-kilovolt transmission line will connect this project to the power grid, ensuring that clean energy reaches Philippine homes and businesses with efficence,” he added.
Once completed, the MTerra Solar is expected to provide clean energy to approximately 2.4 million households through a 20-year, 850 MW mid-merit power supply agreement with Manila Electric Co. (Meralco).
The project is being developed by Terra Solar Philippines, Inc., a unit of SP New Energy Corp. (SPNEC).
The first block with a capacity of 600 MW is expected to be delivered in February 2026, while the rest remain250 MW will follow in 2027.
“Numbers alone cannot express the full significance of this project. We make a statement today that the Philippines will not only keep pace with the global energy transition, but further express our intention – the Philippines’ intention – to lead the migration of thermal energy sources. towards renewable energy sources,” chairman of Meralco and general manager Mansaid uel V. Pangilinan.
In his speech, Mr. Marcos said the project would also “reduce CO2 emissions by more than 4.3 million tons annually.”
“To put that into perspective, it amounts to removing three million petrol cars from our roads – a decisive action to help tackle global warming and climate change,” he added.
Energy Secretary Raphael PM Lotilla said major energy investments such as the MTerra project will help the Philippines reach its renewable energy target faster.
“The major investment in solar and energy storage technology is a crucial step towards achieving our goal of increasing the share of renewable energy sources in the energy mix, reducing our carbon footprint and meeting electricity demand in Luzon pack,” he said.
The project is in line with the Philippines’ goal to increase the share of renewable energy in the energy generation mix to 35% by 2030 and 50% by 2040.
The MTerra Solar was certified as an “energy project of national importance” by the Department of Energy and received “green lane certification” from the Board of Investments, allowing it to benefit from streamlined and expedited permit processing.
POSSIBILITIES
“The country should quickly take advantage of the opportunities towards a green transition, such as the Nueva Ecija MTerra Solar project, especially as there is a real demand for cheaper electricity and the current prices charged by these renewable energy (RE) facilities are proposed to actually compete with traditional baseload plants,” said analyst Terry L. Ridon, founder of InfraWatchPH.
“However, we must be given the opportunity to transition at our own pace, based on the actual conditions of the economy,” he said in a Facebook Messenger chat.
Mr Ridon said public support for the green transition would strengthen as prices of electric vehicles are expected to be cheaper than combustion engines due to lower production costs and advanced production methods.
Mr. Marcos said the MTerra Solar project, which includes five million solar panels, is expected to create as many as 10,000 jobs.
“It will stimulate local economies and provide countless opportunities for growth and development in those communities,” he said.
“Over the next decade, the country is poised to generate nearly €23 billion in financial benefits – resources that will pave the way for even greater progress.”
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partially so owned by PLDT Inc.
Hastings Holdings, Inc., a part of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in Business world through the Philippine Star Group, which it controls. — Kyle Aristophere T. Atienza And Heroes Joy Talavera