MGen Renewable Energy Inc. (MGreen), the renewable energy development arm of MERALCO Powergen Corp. (MGen), looks to complete the acquisition of a controlling stake in SP New Energy Corp. (SPNEC) worth Php 200 billion, by the end of the year.
The company aims to energize the first 600 megawatts (MW) by the first quarter of 2026.
In a report by the Philippine Star, MERALCO chairman and CEO Manuel V. Pangilinan expressed optimism about closing the acquisition promptly to facilitate the project’s development, encompassing not only the solar plants but also batteries and transmission infrastructure.
Earlier, MGreen disclosed its intention to invest P15.9 billion in SPNEC, acquiring common and preferred voting shares, ultimately becoming the controlling shareholder with a 50.5 percent total voting interest.
The collaboration with Solar Philippines Power Project Holdings Inc. (SPH) positions SPNEC as the primary vehicle for the development of 3,500-MW solar panels and 4,000 megawatt-hours of battery energy storage systems in Luzon.
The ambitious project is anticipated to be among the largest solar initiatives globally.
Pangilinan revealed that the estimated investment cost, including photovoltaics (PVs), batteries, and land, is approximately P200 billion. SPNEC has made substantial progress in land acquisition, securing over 50 percent, or about 3,500 hectares, for the solar project.
SPNEC CEO Leandro Leviste expressed enthusiasm for the collaboration, highlighting the synergy between MERALCO’s capabilities and the solar developments for the benefit of stakeholders.
MGen, through MGreen, has set an initial target of reaching 1,500 MW of renewable energy capacity by 2030. The company is committed to investing at least P18 billion in constructing over two gigawatts of gross renewable energy capacity from solar and wind, working in conjunction with various partners until 2030.