Meralco PowerGen Corporation (MGEN) is pushing ahead with plans to tap the local capital market via a real estate investment trust (REIT) to finance its renewable energy initiatives, led by the landmark MTerra Solar project. The company, Meralco’s power generation arm, currently owns over 5,000 megawatts (MW) of power capacity and aims to more than double this to over 10,000 MW by 2030.

MGEN CEO Emmanuel V. Rubio confirmed that a REIT listing is “one of the options” on the table as the company seeks to unlock value from its solar farms and battery storage assets under management. “We feel that the right timing is that when we deliver the first phase of Terra Solar — that’s when investors and the public will know that we’re capable of delivering on our promise,” Rubio told reporters.

The PHP 200-billion MTerra Solar Project is set to become one of the world’s largest hybrid solar and energy storage facilities, boasting 3,500 MWp solar capacity paired with a 4,500-megawatt-hour (MWh) battery energy storage system across Nueva Ecija and Bulacan. Scheduled for completion in 2027, this project is expected to serve clean power to around 2.4 million households and reduce carbon emissions by approximately 4.3 million tons annually.

Rubio shared details about MGEN’s plans for expanding its solar capacity with a potential second phase of the Terra Solar project. He said the company is eyeing new land acquisitions, including approximately 450 hectares recently purchased in Nueva Ecija, which may be integrated into Terra Solar 2. However, he emphasized flexibility in the project’s footprint, noting, “I don’t think Terra Solar 2 has to be in one location.”

The follow-up project aims to deliver 1,500 MW alternating current (MWac) solar capacity complemented by 900 MWh of storage and could be spread across multiple sites to meet distribution utilities’ demand profiles.

Rubio emphasized MGEN’s role in Meralco’s broader sustainability agenda.“I believe that’s going to go a bit higher. But the goal really is not to be as close as we can to the distribution utility’s earnings, but to make sure that we contribute to the overall sustainability strategy of Meralco.”

The plan to list the REIT is targeted for the second half of 2026 to coincide with the delivery of Terra Solar’s initial phase, aiming to strengthen investor confidence in MGEN’s growth trajectory and operational capabilities.

How will MGEN’s REIT initiative influence investment dynamics and renewable energy development in the Philippines?  

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