THE PHILIPPINES on Thursday signaled the start of construction of a P200-billion solar and battery storage project that is expected to supply power to over two million households by 2027.
President Ferdinand R. Marcos, Jr. led the groundbreaking of 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 by 2027, the project would deliver 3,500 megawatts of solar power to the Luzon grid, Mr. Marcos said in a speech, adding that it would become the “largest integrated solar and battery storage facility in the world.”
“A 13-kilometer, 500-kilovolt transmission line will connect this project to the power grid, ensuring that clean energy reaches Filipino homes and businesses with efficiency,” he added.
Once completed, the MTerra Solar is expected to supply clean energy to about 2.4 million households through a 20-year, 850-MW mid-merit power supply deal with Manila Electric Co. (Meralco).
The project is being developed by Terra Solar Philippines, Inc., a unit of SP New Energy Corp. (SPNEC).
The initial block with 600 MW of capacity is scheduled for delivery by February 2026, while the remaining 250 MW will follow in 2027.
“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 so express our intention — the Philippines’ intention — to lead the migration from thermal to renewables,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said.
In his speech, Mr. Marcos said the project would also “reduce carbon emissions by more than 4.3 million metric tons annually.”
“To put that into perspective, it is equivalent to removing three million gasoline-powered cars from our roads — a decisive action towards helping address global warming and climate change,” he added.
Energy Secretary Raphael P.M. Lotilla said major investments in energy such as the MTerra project will help the Philippines reach its renewable energy goal faster.
“The major investment in solar and energy storage technology is a crucial step toward achieving our goal of increasing the share of renewables in the energy mix, reducing our carbon footprint and addressing electricity demand in Luzon,” he said.
The project aligns with the Philippines’ goal of increasing the share of renewable energy in its power generation mix to 35% by 2030 and 50% by 2040.
The MTerra Solar was certified by the Energy department as an “energy project of national significance” and secured “green lane certification” from the Board of Investments, enabling it to benefit from streamlined and expedited permit processing.
OPPORTUNITIES“The country should be quick to capitalize on opportunities towards green transition, such as the Nueva Ecija MTerra Solar project, particularly as there is a real demand for cheaper electricity and the current prices proposed by these renewable energy (RE) facilities can actually compete with traditional base load plants,” said public investment analyst Terry L. Ridon, who started InfraWatchPH.
“We should however be allowed 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 get stronger as the prices of electric vehicles are expected to be cheaper than internal combustion engines due to lower production costs and advanced manufacturing methods.
Mr. Marcos said the MTerra Solar project, which features five million solar panels, is expected to create as many as 10,000 jobs.
“It will stimulate local economies and open countless opportunities for growth and development in those communities,” he said.
“Over the next decade, it is poised to generate nearly P23 billion in financial benefits — resources that will pave the way for even greater progress.”
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Kyle Aristophere T. Atienza and Sheldeen Joy Talavera
