Manila: President Ferdinand R. Marcos Jr. announced that the MTerra Solar Project, the world's largest operational integrated solar-and-battery facility located on a single site, is set to fortify the Philippines against global energy shocks by reducing dependence on imported fossil fuels and enhancing the nation's energy security for the long term.
According to Philippines News Agency, during the inauguration of Phase 1 of the project in Nueva Ecija, Marcos emphasized that the facility represents the government's strategy to diversify the Philippines' energy sources amid volatile global fuel markets, exacerbated by geopolitical tensions such as those in the Middle East, which have recently caused oil prices to surge.
Marcos highlighted that coal constituted 57 percent of the country's electricity production last year, whereas renewable energy accounted for only about 25 percent. This energy composition, he noted, makes the country more susceptible to global fuel price fluctuations and international market dynamics, as experienced in recent months. The President underscored the necessity of diversifying energy sources and expressed commitment to shifting towards renewable energy.
Recognizing the dangers of excessive reliance on imported fuel, Marcos stated that his administration is fast-tracking investments in renewable energy to establish a more robust and dependable power system. "This MTerra Solar Project stands as one of the clearest expressions of that commitment," he asserted.
The project, developed by Terra Solar Philippines Inc., an affiliate of Meralco PowerGen Corp., in collaboration with global infrastructure investor Actis, spans across five municipalities in Nueva Ecija and Bulacan. Phase 1 has already activated 1,373 megawatts (MW) of solar photovoltaic capacity and 825 MW of battery energy storage.
Earlier this week, the Department of Energy (DOE) announced that the National Grid Corporation of the Philippines had approved an initial 750 MW of capacity for testing and commissioning, marking the first flow of electricity from the project into the Luzon grid. Marcos noted that Phase 1 is approximately 91 percent complete and is anticipated to commence full commercial operations by August, with Phase 2 planned for completion next year.
Once fully operational, the project will deliver up to 3,500 MW of solar power, supported by 4,500 megawatt-hours of battery storage, sufficient to provide clean electricity to around 2.4 million households. The facility is also expected to create over 10,000 jobs, cut carbon emissions by about 4.3 million metric tons annually, and generate nearly PHP23 billion in economic benefits over the next decade.
Marcos stated that the project is part of broader initiatives to modernize the country's energy sector. From July 2022 to May 2026, the DOE awarded 605 renewable energy service contracts, as noted by the President. The government has also increased installed battery energy storage capacity from 93 MW in July 2022 to 845 MW by May this year and has launched a 10-year Green Energy Auction Program aiming to deliver 25 gigawatts of additional renewable energy capacity starting in 2027.
"These initiatives demonstrate that securing our future energy requirements means building the institutions, the systems, and partnerships that allow investments to serve the Filipino people for many generations to come," Marcos concluded.
