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The MTerra Solar Project, poised to become the world’s largest integrated solar and battery energy storage facility on a single site, reached a major milestone on Tuesday as its first phase moved closer to full commercial operations, reinforcing the Philippines’ push to expand renewable energy capacity and strengthen long-term energy security.
President Ferdinand Marcos Jr. led the inauguration of Phase I of the project in Nueva Ecija, describing the development as a key step in diversifying the country’s power mix amid continued volatility in global fuel markets and growing demand for reliable electricity.
Developed by Terra Solar Philippines Inc., an affiliate of Meralco PowerGen Corp. (MGEN), the first phase has reached about 91 percent completion and is expected to begin full commercial operations by August.
The second phase is already underway and is targeted for completion in 2027, when the facility will be capable of generating up to 3,500 megawatts (MW) of peak solar capacity supported by a 4,500-megawatt-hour (MWh) battery energy storage system.
Expanding Clean Energy Capacity
“This achievement comes at a time when the need to boost our energy sector has never been more apparent,” the President said during the inauguration.
Marcos noted that coal still accounts for 57 percent of the country’s electricity generation, while renewable energy contributes only around 25 percent, leaving the Philippines vulnerable to fluctuations in global fuel prices and international market disruptions.
“Such an energy mix leaves us more vulnerable to fluctuations in global fuel prices and developments in the international market, as we have experienced in the last few months,” he said, stressing the need to accelerate the shift toward cleaner energy sources.
The inauguration comes less than two years after Marcos led the groundbreaking ceremony for the project’s first phase.
World’s Largest Integrated Solar Facility
MGEN Chairman Manuel V. Pangilinan described the development as a landmark achievement not only for the company but also for the Philippine energy sector.
“What we inaugurated today will be the world’s largest integrated solar and battery storage facility located in a single site,” Pangilinan said. “And it rises not in Texas, not in the Gobi Desert, but right here in Gapan, Nueva Ecija.”
According to MGEN, Phase I has already energized 1,373 MW of solar photovoltaic capacity and 825 MW of battery energy storage, equivalent to 3,300 MWh, making it the largest operational integrated solar and battery facility in a single location globally.
The facility is currently able to export up to 750 MW to the Luzon grid while additional transmission-related works are being completed with the grid operator. The Department of Energy recently approved the testing and commissioning of this export capacity.
MGEN also expects the project’s available generation capacity to reach around 1,350 MW this month.
Lower Power Costs
Beyond expanding renewable energy capacity, the project is expected to provide economic benefits by helping moderate electricity prices in the Luzon grid.
Meralco Head of Utility Economics Larry Fernandez said adding hundreds of megawatts of new supply should place downward pressure on electricity prices in the Wholesale Electricity Spot Market.
Renewable energy generation also enjoys value-added tax exemption under the Renewable Energy Act of 2008, further supporting efforts to keep electricity costs competitive.
MGEN Renewables President and Chief Executive Officer Dennis Jordan said the project has already helped cushion consumers from elevated fuel and liquefied natural gas prices after it began injecting clean power into the grid earlier this year.
Unlike conventional solar facilities that typically generate electricity for only five to six hours daily, MTerra Solar’s battery energy storage system allows electricity to be delivered for up to 13 hours. Jordan said the facility can supply Meralco customers from as early as 8 a.m. until 9 p.m., significantly extending the availability of solar-generated electricity beyond daylight hours.
Upon full completion, the project is expected to provide enough electricity to serve more than 2.4 million Filipino households while reducing carbon emissions by an estimated 4.3 million metric tons annually.
National Energy Strategy
The MTerra Solar project forms part of the government’s push to expand renewable energy investments and modernize the country’s power sector.
Marcos said the Department of Energy awarded 605 renewable energy contracts between July 2022 and May 2026. The agency also launched the 10-Year Green Energy Auction Program, which aims to deliver 25,000 MW of additional renewable energy capacity from 2027 to 2035.
The administration has likewise expanded the country’s installed battery energy storage capacity from 93 MW in July 2022 to 845 MW as of May 2026.
Alongside the project’s inauguration, MGEN announced that its renewable and thermal power businesses have secured ISO certifications covering quality management, environmental management and occupational health and safety systems across their operations, reflecting the company’s efforts to strengthen governance while expanding its generation portfolio.
Despite continued progress, regulators have acknowledged that the country’s renewable energy rollout remains slower than targeted. Large-scale projects such as MTerra Solar are key in helping achieve the government’s goal of increasing the share of renewables in the national energy mix to 35 percent by 2030.
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