The Philippine government is taking significant steps to reduce the country's dependence on imported fossil fuels by investing in renewable energy projects. President Ferdinand R. Marcos, Jr. announced that the $4-billion MTerra Solar project in Central Luzon is expected to supply electricity to over 2.4 million households by 2027.
The project's first phase is 91% complete and is expected to begin commercial operations by August. Meralco PowerGen Corp. (MGEN) has energized 1,373 megawatt-peak (MWp) of solar photovoltaic capacity and 3,300 megawatt-hour (MWh) of battery energy storage from the project's Phase 1.
The project spans 3,500 hectares across five municipalities in the provinces of Bulacan and Nueva Ecija. Upon full completion, the plant will deliver 3,500 MWp of solar power to the grid, supported by 4,500 MWh of battery energy storage capacity.
Energy Secretary Sharon S. Garin highlighted the significance of the project, stating that it will help the country move towards "cleaner and more sustainable energy." The project is also expected to reduce carbon emissions by approximately 4.3 million metric tons annually.
The government has set a goal to increase the renewable energy mix to 40% by 2040. To achieve this target, the Department of Energy has accelerated the issuance of permits, with 605 renewable energy contracts awarded between July 2022 and May this year.
The MTerra Solar project is expected to generate nearly P23 billion in financial benefits over the next decade, including increased tax revenues for local government units and direct financial assistance to the host communities in Central Luzon.
Mr. Marcos emphasized the importance of investing in renewable energy, stating that it will help strengthen the stability of the power system while expanding the role of clean energy in the power generation mix. The project's successful completion will also help drive electricity prices down over time.
The second phase of the project is scheduled for completion next year, which is expected to help MGEN exceed its renewable energy capacity target of 1,500 MW by 2027. Following the successful completion of required grid tests, the facility is now ready to deliver 650 MW mid-merit capacity to Meralco under a power supply agreement.
The project's inauguration marks a significant milestone in the country's transition to renewable energy. With the successful completion of the first phase, the Philippines is one step closer to achieving its goal of reducing dependence on imported fossil fuels and increasing the share of renewable energy in the power generation mix.
