As the country’s largest power distributor, the Manila Electric Company (Meralco) has been actively participating in developing the country’s renewable energy resources —solar in particular — as part of its broader strategy to embrace a sustainable energy future.

Meralco, through its subsidiary Meralco PowerGen Corporation (MGen), has been driving initiatives in expanding its renewable energy portfolio and reduce fossil fuel dependency to support the country’s clean energy transition.

Terra Solar Philippines Inc. (TSPI), MGen’s cornerstone renewable energy project through SP New Energy Corporation (SPNEC), is developing the MTerra Solar Project — envisioned to be the world’s largest integrated solar and battery storage facility.

Spanning 3,500 hectares across Nueva Ecija and Bulacan, the over P200 billion MTerra Solar project will consist of 3,500 megawatts peak (MWp) photovoltaic (PV) capacity, complemented by a 4,500 megawatt-hours (MWhr) Battery Energy Storage System (BESS) capacity — positioning Meralco at the forefront of renewable energy innovation in Southeast Asia.

Reinforcing Meralco’s commitment to sustainability, this massive project will play a pivotal role in the Philippines’ push to develop renewable energy sources and achieve long-term energy security.

At a national level, the project aligns with the government’s renewable energy goals of 35 percent by 2030 and 50 percent by 2040. As of end-2023, the country’s installed renewable energy capacity stands at almost 30 percent of total energy mix.

As it is set to be largest solar and battery energy storage project globally, MTerra Solar not only accelerates this transition but also sets a benchmark for other nations.

Construction in full swing

President Ferdinand R. Marcos Jr. and Meralco Chairman Manuel V. Pangilinan recently led the ceremonial groundbreaking for MTerra Solar.

“We take a leap towards the future driven by innovation and sustained by our collective hope for a cleaner and greener Philippines. We stand together at the site of what will become the largest integrated solar and battery storage facility in the world — the MTerra Solar Project. This landmark project will put our country on the map as a leader in renewable energy,” President Marcos Jr. said during the ceremony.

“The MTerra Solar power project is designed to address two critical challenges of our time: the surging demand for electricity and the pressing need to shift to renewable and sustainable sources of energy,” he added.

Once completed, MTerra Solar is expected to supply clean energy to approximately 2.4 million households and avoid carbon emissions by an estimated 4.3 million tons annually, equivalent to removing over 3 million gasoline-powered vehicles from the roads every year.

“Numbers alone fail to articulate the full significance of this project. We are making a statement today that the Philippines is not only keeping pace with the global energy transition but more, we are expressing our intention, the Philippines’ intention, to lead the migration from thermal to renewables,” Pangilinan said.

“We will build, we will take action, and we will never stop daring. At the end, this is all showing the world what Filipinos can achieve when the public and private sectors work together with focus and urgency,” he added.

The MTerra Solar Project is set to deliver clean solar energy under a 20-year, 850-MW mid-merit power supply agreement to Meralco. The initial block of 600 MW is slated for delivery by February 2026, while the remaining 250 MW will follow in February 2027.

This not only conforms with the Renewable Portfolio Standards of the Department of Energy (DoE) but also reinforces Meralco’s pledge to source 1,500 MW of its power supply requirements from renewable energy.

A cornerstone in the Philippines’ clean energy transition, MTerra Solar’s hybrid Solar PV-BESS system ensures stable and reliable power, potentially rivaling traditional baseload sources.

Beyond environmental benefits, the project also offers significant socio-economic contributions — creating more than 10,000 jobs during the construction phase and generating community benefits expected to reach around P23 billion over the next decade through taxes and economic development.

Strong Global and Local Collaboration

The landmark MTerra Solar Project reflects seamless fusion of global expertise and local innovation.

MGen and SPNEC partnered with Actis, UK-based global investor in sustainable infrastructure, for a 40-percent interest in TSPI. The transaction is valued at US$600 million (approximately P34 billion), allowing TSPI to secure the largest foreign direct investment for a greenfield project in Philippine history.

It also awarded the Engineering, Procurement, and Construction (EPC) contract for the west side of the project to China Energy Engineering Corporation (Energy China).

Additionally, they will develop specialized training programs for local teams and collaborate closely with stakeholders to facilitate the smooth integration of the project into the national grid, including the incorporation of the BESS.

TSPI also tapped Power Construction Corporation of China Ltd. (Power China) for another EPC contract, this time, for the east section of the project spanning approximately 1,505 hectares across Brgy. Makabaklay in Gapan, Barangay Pias in General Tinio, and Barangay Callos in Peñaranda, all located in Nueva Ecija.

Both Energy China and Power China will provide seamless, turnkey delivery of key components as well as provide warranty coverage, defect resolution, and robust operational and maintenance protocols to ensure the project’s long-term reliability and success.

Energy China is a global leader in energy and infrastructure, operating in over 140 countries and consistently recognized in the Fortune Global 500 for its significant contributions to major engineering projects like the Three Gorges Dam, the South-toNorth Water Diversion Project, the West-East Power Transmission Project, and the WestEast Gas Pipeline Project.

Meanwhile, Power China is a globally recognized leader in the field of planning, design, and construction of electric power infrastructure, it has also been pivotal in advancing the Philippine energy sector with its participation in the delivery of complex and large-scale infrastructure projects, such as the 540-MW Kauswagan Coal-Fired Power Plant, 1,320-MW Dinginin Coal-Fired Power Plant, and the Dumanjug Converter Station of the Visayas-Mindanao Interconnection Project.

On the local front, TSPI engaged Meralco Industrial Engineering Services Corp. (MIESCOR) to link the flagship solar development to the Luzon power grid.

MIESCOR, the engineering, procurement, construction, and operations arm of Meralco, would construct 34.5/230/500-kilovolt (kV) Main Collector Substation, two 34.5/230-kV Solar PV Satellite Collector Substations, and two double-circuit 230-kV Transmission Lines.

The connection project will ensure the delivery of the energy it would generate once the project becomes operational.

With these key agreements, TSPI demonstrates its drive for excellence and commitment to ensuring that project milestones are effectively executed and delivered on time.

As the country works toward its ambitious renewable energy goals, the MTerra Solar Project not only addresses the country’s growing electricity demand through clean and reliable power but also demonstrates the nation’s capability to lead the shift to sustainable energy on a global scale.

By leveraging cutting-edge solar and battery storage technologies, Meralco’s landmark project brings the country a step closer to a greener, cleaner, and more sustainable future.