The Philippine Department of Energy (DOE) has revealed that construction has begun on the 3.5 GW Terra Solar project which spans the provinces of Nueva Ecija and Bulacan on the northern island of Luzon.
Philippine Firms Launch 3.5 GW Terra Solar and BESS Project
Philippines renewable energy companies Terra Solar Philippines, Inc. (TSPI), Meralco PowerGen Corporation (MGEN) and SP New Energy Corporation (SPNEC) have commenced construction on a 3.5 GW Terra Solar project along with a 4.5 GWh battery energy storage system (BESS).
Terra Solar is set to become the world’s largest integrated solar and battery storage facility, this $6.1 billion (USD 4 billion) project will span 35 square kilometres — roughly four times the size of Sydney’s Kingsford Smith Airport. It will be distributed across five locations in Central Philippines, within the Nueva Ecija and Bulacan regions — approximately 92 kilometres north of Manila.
China Energy Engineering Group, an energy and infrastructure company based in China and active in 140 countries, was recently awarded the engineering, procurement and construction (EPC) contract. The company’s notable projects include the 40 billion kWh West-East Power Transmission Project.
Terra Solar to Power 2.4M Homes & Offset 4.3M Tons of CO2 Annually
Once completed, Terra Solar will provide clean energy to around 2.4 million households and is expected to prevent about 4.3 million tonnes of carbon emissions annually — comparable to taking over 3 million gasoline-powered cars off the road each year.
The Philippine government aims to reach a 35% renewable energy mix by 2030 and 50% by 2040. Currently, renewable energy makes up nearly 30% of the country's total installed energy capacity.
“We stand together at the site of what will become the largest integrated solar and battery storage facility in the world – the Terra Solar Project. This landmark project will put our country on the map as a leader in renewable energy. The Terra 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.” said Marcos Jnr, Phillippines President.
MTerra Solar Project to Supply 850 MW of Clean Energy to Meralco
The MTerra Solar Project will provide clean solar energy to Meralco through a 20-year, 850 MW mid-merit power supply agreement with the first 600 MW block scheduled for delivery by February 2026. The remaining 250 MW is expected to be delivered by February 2027, further supporting the company’s commitment to sourcing 1,500 MW of its power supply from renewable energy.
Manuel Pangilinan, Meralco Chairman and Chief Executive Officer, stated: “We are making a statement 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. We will build, we will take action and we will never stop daring. In the end, this is all showing the world what Filipinos can achieve when the public and private sectors work together with focus and urgency.”