Meralco PowerGen Launches Phase 1 of World’s Largest Integrated Solar Farm to Reduce Luzon Power Costs

 

MGEN Accelerates Renewable Energy Expansion as MTerra Solar Begins Large-Scale Operations

Meralco PowerGen Corp. (MGEN) has reached a defining moment in the country's energy transition with the inauguration of the first phase of MTerra Solar, a landmark development expected to improve electricity supply while helping moderate power prices across the Luzon grid.

The project represents one of the most ambitious renewable energy investments in the Philippines. Once fully completed in 2027, MTerra Solar will combine a 3,500-megawatt solar facility with a 4,500-megawatt-hour battery energy storage system, making it the world's largest integrated solar and battery project. Spanning Nueva Ecija and Bulacan, the development will occupy an area larger than Pasig City and is designed to generate enough electricity to serve approximately 2.4 million households.

Its impact is already being felt.

Earlier this year, MTerra Solar started delivering clean electricity to the national grid. Under Phase 1 alone, the facility is expected to provide 600 megawatts of mid-merit capacity to Manila Electric Co., strengthening available supply at a time when volatile global fuel markets continue to influence electricity prices.

According to Meralco Head of Utility Economics Larry Fernandez, increasing available generation places downward pressure on spot market prices by improving the balance between electricity supply and demand. Renewable energy also offers an additional financial advantage because power generated from qualified renewable projects is exempt from value-added tax under the Renewable Energy Act of 2008.

The principle is similar to expanding a highway during heavy traffic. As more lanes become available, congestion eases and vehicles move more efficiently. In the electricity market, additional generating capacity reduces supply constraints, helping stabilize wholesale prices and ultimately benefiting consumers.

MGEN Renewables President and Chief Executive Officer Dennis Jordan said the facility has already demonstrated its ability to soften the effects of elevated fuel and liquefied natural gas costs. With around 250 megawatts currently available for dispatch, the project has begun contributing cleaner and more affordable electricity to the market.

Development continues to advance at a rapid pace. The Department of Energy recently confirmed that MTerra Solar received approval from the grid operator to begin testing and commissioning 750 megawatts of additional capacity. MGEN expects total generation capability to increase to 1,350 megawatts within the month, reinforcing its position as the largest integrated solar installation of its kind worldwide.

A major strength of the project lies in its battery energy storage system. Conventional solar facilities typically produce electricity for only five to six hours each day, depending on sunlight conditions. MTerra Solar's large-scale battery system significantly extends that capability, enabling stored energy to be supplied for as long as 13 hours. This allows electricity generated during daylight hours to continue powering homes and businesses from early morning until around nine in the evening, improving grid reliability even after sunset.

Alongside the expansion of its renewable portfolio, MGEN is reinforcing operational excellence across its business through internationally recognized management systems.

The company recently secured ISO certifications covering quality management, environmental management, and occupational health and safety throughout both its renewable and thermal energy operations. MGEN President and Chief Executive Officer Emmanuel Rubio said these certifications demonstrate the company's commitment to consistent governance and globally accepted operating standards as it continues expanding its energy assets.

Through MGEN Renewables, triple ISO certifications now cover the company's headquarters and multiple solar facilities located in Nueva Ecija, Rizal, Bulacan, Isabela, Batangas, and Tarlac. The unified certification framework ensures every certified site follows the same standards for quality, environmental responsibility, and workplace safety.

Jordan said the certifications validate that both corporate and plant operations are functioning under a single management system built around internationally accepted best practices.

The company's thermal generation business has likewise maintained its certifications. MGEN Thermal President and Chief Executive Officer Arnel Santos emphasized that the baseload plants serving Cebu, Iloilo, and neighboring areas continue to operate under globally recognized standards that support reliable and responsible power generation.

MGEN also expects substantial growth in its overall generating portfolio. By the end of the year, total installed capacity is projected to increase to 6,800 megawatts, up significantly from the 5,069 megawatts recorded in 2025, underscoring the company's expanding role in strengthening the country's energy security while accelerating the transition toward cleaner power sources.