President Ferdinand Marcos Jr. said on Tuesday the MTerra Solar Project would help protect the Philippines from global energy shocks by reducing its reliance on imported fossil fuels and expanding the role of renewable energy in the country’s power mix.
Marcos made the remarks at the inauguration of the project’s first phase in Nueva Ecija, according to the Philippine News Agency.
He said the facility would strengthen the country’s long-term energy security as global fuel markets remain exposed to geopolitical conflicts, including tensions in the Middle East that have driven up oil prices.
Coal accounted for 57% of the Philippines’ electricity generation in 2025, while renewable energy contributed about 25%, Marcos said.
“Such an energy mix leaves us more vulnerable to fluctuations in global fuel prices and developments in the international market,” he said.
The project was developed by Terra Solar Philippines Inc., an affiliate of Meralco PowerGen Corp., in partnership with global infrastructure investor Actis.
It spans five municipalities in the provinces of Nueva Ecija and Bulacan.
The first phase has installed 1,373 megawatts of solar photovoltaic capacity and 825 MW of battery energy storage.
The Department of Energy earlier said the National Grid Corporation of the Philippines had cleared an initial 750 MW for testing and commissioning, allowing power from the facility to begin flowing into the Luzon grid.
Marcos said the first phase was 91% complete and expected to begin full commercial operations in August. The second phase is targeted for completion in 2027.
Once fully operational, the project will have up to 3,500 MW of solar capacity and 4,500 megawatt-hours of battery storage, enough to supply about 2.4 million households.
The facility is also expected to create more than 10,000 jobs, cut carbon emissions by about 4.3 million metric tons annually and generate nearly 23 billion pesos ($403 million) in economic benefits over the next decade, Marcos said.
The President said the project was part of broader efforts to modernise the country’s energy sector and attract more investment in renewable power.
The energy department awarded 605 renewable energy service contracts from July 2022 to May 2026, while installed battery storage capacity increased to 845 MW from 93 MW over the same period, he said.
The government has also launched a 10-year Green Energy Auction Program aimed at adding 25 gigawatts of renewable energy capacity from 2027.
