Photo credit: MGEN

The Energy Regulatory Commission (ERC) has approved Terra Solar Philippines, Inc.’s (TSPI) application to develop and own dedicated transmission facilities for the MTerra Solar Project, the country’s largest planned solar and battery energy storage installation.

In a decision promulgated on October 8, 2025, the ERC approved the company’s request to build point-to-point facilities connecting the 3,500-megawatt (MW) solar and 4,500-megawatt-hour (MWh) battery project in Nueva Ecija and Bulacan to the Luzon grid through the Nagsaag–San Jose 500-kilovolt line and the planned San Isidro 500-kV substation.

According to the ERC, the interconnection facilities are valued at around PHP 14.25 billion and were about 90% completed as of September 2025. The regulator also assessed a PHP 106.86 million permit fee based on the project’s estimated cost.

The regulator denied TSPI’s request to operate and maintain the facilities, stating that “NGCP shall operate and maintain the subject facilities, subject to applicable charges to TSPI.”

TSPI is a wholly owned subsidiary of SP New Energy Corporation (SPNEC), which is controlled by the Meralco group through MGen Renewable Energy, Inc. (MGreen).

According to the ERC, its inspection team found the dedicated transmission facilities about 90% completed as of September 2025. The project’s Phase 1 commercial operations are scheduled for February 26, 2026, while Phase 2 is targeted for February 26, 2027.

The PHP 200-billion MTerra Solar Project is a joint venture between MGreen and Vena Energy. Under its power supply agreement with Meralco, the project will deliver up to 850 MW of baseload solar power once operational.

The ERC set a permit fee of PHP 106.86 million, based on the project’s estimated cost of PHP 14.25 billion, and directed Terra Solar to pay the amount, submit its compliance report, and finalize an operations and maintenance agreement with the National Grid Corporation of the Philippines (NGCP).

MTerra Solar has secured USD 600 million in foreign investment and continues site development ahead of its target commissioning dates.

What role do you think the MTerra Solar Project will play in shaping the Philippines’ renewable energy landscape in the coming years?

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