PRESIDENT Ferdinand R. Marcos, Jr. on Tuesday said the $4-billion MTerra Solar project in Central Luzon is expected to supply electricity to more than 2.4 million households by 2027, as the government steps up investments in renewable energy to reduce the country’s dependence on imported fossil fuels.
“Last year alone, coal accounted for 57% of our total power generation mix, while renewable energy contributed only about 25%,” Mr. Marcos said during the inauguration of the project’s first phase in Gapan City, Nueva Ecija. “Such an energy mix leaves us more vulnerable to fluctuations in global fuel prices and developments in the international market.”
The President said the project’s first phase is 91% complete and is expected to begin commercial operations by August.
Meralco PowerGen Corp. (MGEN), a subsidiary of Manila Electric Co. (Meralco), 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.
“What we inaugurated today will be the world’s largest integrated solar and battery energy storage facility located in a single site,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said during the event. “It (MTerra Solar) rises not in Texas, not in the Gobi Desert, but right here in Gapan, Nueva Ecija.”
Mr. Pangilinan said the MTerra Solar project will help lower electricity prices.
“The price, it’s a curve, it goes up at night. So, this is mid-merit, so we can sell it at the time to bring down the price,” he told reporters on the sidelines of the project’s inauguration.
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.
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.
At present, its maximum export capacity to the Luzon grid remains at 750 MW pending completion of various works done in collaboration with the grid operator.
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.
Energy Secretary Sharon S. Garin said the massive power project will help the country move towards “cleaner and more sustainable energy.”
“Because of the scale of the project, it is also expected to help drive electricity prices down over time,” Ms. Garin told reporters. “So in the long run, the benefits will be a more stable power supply and lower electricity prices.”
Regarding environmental impact, Mr. Marcos said that once the project is fully operational, it is expected to reduce carbon emissions by approximately 4.3 million metric tons annually.
“These capabilities will help strengthen the stability of our power system while expanding the role of clean energy in our power generation mix,” Mr. Marcos said, noting the government’s goal to increase the renewable energy mix to 40% by 2040.
The government has accelerated the issuance of permits to meet these targets, with the Department of Energy awarding 605 renewable energy contracts between July 2022 and May. The country’s installed energy storage capacity has grown from 93 megawatts in 2022 to 845 megawatts as of May this year.
“All of this enhances the reliability of our power supply, improve the integration of renewable energy into the grid, and help ensure that Filipino consumers benefit from a more stable and efficient energy system,” Mr. Marcos said.
Over the next decade, the facility is projected to generate nearly P23 billion in financial benefits such as increased tax revenues for local government units and direct financial assistance to the host communities in Central Luzon.
Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Erika Mae P. Sinaking and Sheldeen Joy Talavera
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