Marcos Jr. leads groundbreaking of Meralco Terra Solar

MANILA, Philippines —  President Marcos led the groundbreaking yesterday of what would become the world’s largest integrated solar and battery storage facility, a project seen to make the Philippines a leader in renewable energy while contributing to efforts to address climate change and global warming.

The Meralco Terra Solar Project is expected to supply clean energy to about 2.4 million households and avoid carbon emissions by an estimated 4.3 million tons per year, equivalent to removing more than three million gasoline-powered vehicles from the roads annually.

The $4-billion project, which spans 3,500 hectares across Nueva Ecija and Bulacan, will deliver 3,500 megawatts peak of solar power to the Luzon grid with 4,500 megawatt-hour battery energy storage once it becomes fully operational by 2027.

?Speaking during the groundbreaking ceremony in Peñaranda, Nueva Ecija, Marcos said the Terra Solar Project was designed to address two critical challenges – the surging demand for electricity and the pressing need to shift to renewable and sustainable energy sources.??“By leveraging our abundant solar resources, the Terra Solar Project will help stabilize our power supply, reduce energy costs, and contribute significantly to our target of 35 percent renewable energy share in the power generation mix by the year 2030,” the President said.??“We take a leap toward the future, driven by innovation and sustained by our collective hope for a cleaner and greener Philippines. This landmark project will put our country on the map as a leader in renewable energy,” he added.

Terra Solar Philippines, Inc., Meralco PowerGen Corp. and SP New Energy Corp. are behind the project, which is aligned with the government’s target of attaining a 35 percent renewable energy mix by 2030 and 50 percent by 2040.

“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 Manny V. 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,” Pangilinan said.

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

Before the groundbreaking ceremony, Terra Solar Philippines Inc., acting as the investment and development vehicle for the Terra Solar Project, entered into a strategic partnership with United Kingdom-based Actis for a 40 percent interest in the project valued at $600 million or about P34 billion. Terra Solar has also awarded the engineering, procurement and construction contract for the project with China Energy Engineering Corp. and has engaged Meralco Industrial Engineering Services Corp. to link the flagship solar development to the Luzon power grid.

?“With an investment of over P200 billion, this demonstrates confidence in the stakeholders in our nation’s potential and our commitment to securing a stable, steady, reliable, and sustainable power supply,” Marcos said.??“The strong typhoons that we have been experiencing should further strengthen our resolve to find and facilitate solutions that will save our planet and the future of mankind,” he added.??The President said the project is expected to generate nearly P23 billion in financial benefits over the next decade, create more than 10,000 jobs and open countless growth opportunities. He also called on state agencies and the private sector to support the project by ensuring its timely completion.??“Let us do the same for all renewable projects,” he said.

Energy Secretary Raphael Lotilla said the Terra Solar project is a “crucial step” toward the country’s goal of expanding the share of renewables in the energy mix to 35 percent by 2030 from the current 22 percent.

“It not only enhances our energy security and resilience but will also contribute to our broader economic development by creating jobs and promoting sustainable growth,” Lotilla said.