The Philippine Department of Energy (DOE) has announced that construction is underway on the 3.5 GW Terra Solar project, spanning the provinces of Nueva Ecija and Bulacan on the northern island of Luzon.
Philippine Firms Launch 3.5 GW Terra Solar and BESS Project
Philippine renewable energy companies Terra Solar Philippines, Inc. (TSPI), Meralco PowerGen Corporation (MGEN), and SP New Energy Corporation (SPNEC) have begun construction on the 3.5 GW Terra Solar project, which includes a 4.5 GWh battery energy storage system (BESS).
Set to become the world’s largest integrated solar and battery storage facility, the $6.1 billion (USD 4 billion) project will span 35 square kilometres—roughly four times the size of Sydney’s Kingsford Smith Airport. The facility will be distributed across five locations in the Central Philippines, in the Nueva Ecija and Bulacan regions, approximately 92 kilometres north of Manila.
China Energy Engineering Group, a Chinese energy and infrastructure company active in 140 countries, was recently awarded the engineering, procurement, and construction (EPC) contract. One of the company’s most notable projects is 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 offset approximately 4.3 million tonnes of carbon emissions annually—comparable to taking more than 3 million gasoline-powered cars off the road each year.
The project supports the Philippine government’s goal of reaching 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 Philippines President Marcos Jr.
Terra Solar Project to Supply 850 MW of Clean Energy to Meralco
The Terra Solar Project will provide clean solar energy to Meralco through a 20-year, 850 MW mid-merit power supply agreement. The first 600 MW block is scheduled for delivery by February 2026, with the remaining 250 MW expected by February 2027. This initiative supports 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 also expressing 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.”
