MGEN Renewable Energy, Inc.'s subsidiary, PH Renewables Inc., has secured a P2.65 billion loan to bankroll the construction of its 75 megawatt solar project in Baras, Rizal.

In a disclosure on Wednesday, PHRI said Rizal Commercial Banking Corporation approved the 15-year term loan, with RCBC Capital Corporation as the arranger.

PHRI's solar plant at the Philippine Communications Satellite Corporation grounds will start commercial operations within the first quarter of 2023 to supply renewable energy to MPower, the local retail electricity supply arm of Manila Electric Company.

"We look forward to taking part in this evolving energy landscape as we move towards our target of building 1,500MW of renewable energy over the next seven years," said Meralco PowerGen Corporation president and CEO Jaime Azurin.

PHRI is a joint venture between MGreen, MGEN's wholly owned renewable energy unit, and Mitsui & Co. subsidiary Mit-Renewables Philippine Corporation. MGreen and Mit-Renewables are also jointly developing a 45 MW solar project in Cordon, Isabela.

MGreen owns a 51 percent equity stake in PowerSource First Bulacan Solar Inc., which commenced operations of its 55 MW solar plant in San Miguel, Bulacan, in May 2021.

The enlarged MGEN and Global Business Power Corporation's power generation portfolio has a total gross capacity of 2,446 MW that utilizes coal, liquified natural gas, diesel, and solar technologies.