What is set to become the world’s largest solar and battery storage facility, the Meralco Terra Solar Project (MTerra) in the Philippines, got a boost to hasten its completion when UK-based global investment firm Actis closed a PhP 348 billion ($600 million) investment recently.
MTerra Solar is a subsidiary of Meralco PowerGen Corporation (MGEN) through its subsidiary SP New Energy Corporation (SPNEC). Once completed, the solar arrays will cover 3,500 hectares in the Nueva Ecija and Bulacan provinces in the northern and central Luzon province. This project is a major step in the country’s renewable energy efforts and aim to shift the energy mix away from fossil fuels.
The groundbreaking ceremony for the project held on November 21, 2024, was led by President Ferdinand R. Marcos Jr. and Meralco Chairman and CEO Manuel V. Pangilinan, marking a significant milestone in the project’s development. This investment grants Actis a 40% equity stake in MTerra Solar.
As of March 26, 2025, SPNEC secured a loan deal totaling PhP 150 billion ($2.6 billion) with six local banks to finance the construction of the 3,500-megawatt (MW) solar plant in Luzon, with the remaining P50 billion coming from internal funds. The Actis investment practically seals the financial requirements of the project.
The first phase of the project, with a target capacity of 2,500 MW, is expected to be completed by 2026, while the second phase, with a capacity of 1,000 MW, may go online by 2027 with a 4,500 MWh Battery Energy Storage System (BESS) in place.
“This represents the largest such project in this fast-growing region, and we’re delighted to be partnering with MGen and MGreen to deliver this critical project and accelerate the Philippines’ energy transition,” Rahul Agrawal, head of Energy for Southeast Asia at Actis, told Lisbeth Manuel of the Philippine Daily Inquirer.
Chinese engineering
Two Chinese firms, Power Construction Corp. of China Ltd. and Energy China, have been tapped to lead the engineering, procurement, and construction work, while Huawei has secured an agreement to equip the facility with its battery energy storage system.
The initiative is also expected to create up to 10,000 jobs and generate nearly PhP23 billion ($3.98 million) in financial benefits over the next decade. Meralco has partnered with China Energy Engineering Group Co., Ltd. for the project’s engineering, procurement, and construction, ensuring efficient execution.
Early adopter
Two years ago, SP New Energy Corporation (SPNEC), a.k.a Solar Philippines, was an already established solar power leader in the Philippines when its founder Leandro Leviste announced plans to commence construction of project to expand on its current Terra Solar Nueva Ecija energy facility. During the company’s 2023 Annual Stockholders’ Meeting, Solar Philippines indicated that the majority of the firm’s capital raising activities have been allocated to this project.
In May 2024, MGreen, being the renewable energy division of Meralco, acquired a 50.5 percent stake in SPNEC, which fully owned Terra Solar. Before 2024 ended, MGreen increased its shareholding to 55.96 percent. Leviste transitioned from his role as president and CEO to vice chairman, put Philippine billionaire Manuel Pangilinan at the helm, and placed MGreen at the forefront of the Terra Solar project, which integrated a 4,000-megawatt-hour battery energy storage system. SPNEC commenced construction of the project on January 1st. Now, Pangilinan is Chairman and President of SPNEC.
Once completed, this patch of land at the boundary of Nueva Ecija and Bulacan will see solar panels dot the landscape.
Land acquisition for the Terra Solar project remains ongoing. Approximately half of the required land has been titled. However, additional land acquisition is necessary to establish seamless connectivity between the solar farm and the transmission facilities operated by the National Grid Corporation of the Philippines.
Upon its projected completion, the Terra Solar project will surpass the combined operational solar capacity within the Philippines, which currently stands at over 1,500 MW, according to data from the Department of Energy. Furthermore, the project’s scale will exceed that of the Golmud Solar Park in China (2,800 MW) and the Bhadla Solar Park in India (2,250 MW), currently recognized as the world’s largest solar installations.
