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Philippines inaugurates Phase I of MTerra Solar, world's largest integrated solar-plus-storage project

Project Desk · September 2026 · Reading time: 3 min

The Philippines has inaugurated Phase I of the MTerra Solar project in Gapan City, Nueva Ecija, energising 1,373 MW of photovoltaic capacity alongside 825 MW of battery energy storage with a total storage capacity of 3.3 GWh. President Ferdinand Marcos Jr. led the inauguration ceremony, which took place less than two years after groundbreaking.

Upon completion of all phases, MTerra is projected to reach 3.5 GW of solar generation paired with 4.5 GWh of battery storage — a configuration expected to make it the world's largest integrated solar-and-battery facility. Power exports to the Luzon grid were initially limited to 750 MW while transmission upgrades and grid integration work were finalised.

The project is developed by Terra Solar Philippines Inc., a joint venture of Meralco PowerGen Corporation (MGEN) — the power generation arm of Manila Electric Company — and global infrastructure investor Actis, which has invested US$600 million for a 40% equity stake, the largest foreign direct investment in a greenfield infrastructure project in Philippine history. Engineering, procurement and construction contracts for Phase II have been awarded to Energy China (China Energy Engineering Corporation).

Key facts
· Phase I: 1,373 MW PV + 825 MW / 3.3 GWh BESS energised at the 14 July 2026 inauguration; commercial operations declared 26 August 2026 for 600 MW mid-merit capacity under the PSA with Meralco (NGCP's final certificate confirms 950 MWac solar + 825 MW BESS grid connection); remaining 250 MWac to follow
· Ownership: Terra Solar Philippines Inc. — JV of MGEN (Meralco) and Actis (40% stake, US$600m); Phase II EPC: Energy China
· Full build-out: 3.5 GW solar + 4.5 GWh BESS; Phase II completion scheduled 2027
· Impact: electricity for ~2.4 million households; ~4.3 million tonnes CO2 avoided annually
· Context: Philippines DOE has awarded 605 renewable energy service contracts since 2022; 10-year Green Energy Auction Program targets 25 GW between 2027 and 2035

Storage as an energy-security instrument

The project addresses a structural challenge for the Philippines, which has historically relied on imported coal, liquefied natural gas and oil. The solar-plus-storage combination allows excess daytime electricity to be stored and dispatched during evening peak demand periods, reducing both import exposure and curtailment.

The Philippine market context matters for suppliers: the Department of Energy has moved to require co-located storage on new renewable projects, and large integrated solar-plus-storage tenders are already translating policy into operating assets. The government expects the project to generate approximately PHP 23 billion in economic value over the next decade through tax revenues, employment and community development programmes.

Once fully operational, the facility is projected to supply electricity to approximately 2.4 million households while preventing an estimated 4.3 million metric tons of carbon dioxide emissions annually.

Sources
  1. Terra Solar Philippines Inc. — “MTerra Solar Phase 1 Begins Commercial Operations”, 3 September 2026
  2. Terra Solar Philippines Inc. — Phase 1 inauguration coverage, 14 July 2026
  3. MGEN — “MTerra Solar Now Delivering Power to the Luzon Grid”, 14 March 2026
  4. Philippine News Agency — inauguration coverage, 14 July 2026
  5. PV Tech — project financing coverage, February 2026

Figures cross-checked against the developer’s primary disclosures, September 2026.

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