Ron Del Pilar – Terra Solar Philippines, Inc.

MTerra Solar Project Breaks Ground: A Monumental Milestone in the Philippines’ Renewable Energy Transition

Ron Del Pilar — Thu, 21 Nov 2024 08:11:25 +0000

RE Milestone. President Ferdinand Marcos Jr. (center) leads the groundbreaking ceremony of the MTerra Solar Project — the world’s largest integrated solar and battery storage facility. Seen in the photo are (from L-R) Special Assistant to the President for Investment and Economic Affairs Frederick Go, Department of the Interior and Local Government Secretary Jonvic Remulla, Senator Loren Legarda, President Ferdinand Marcos Jr., Meralco Chairman and CEO Manuel Pangilinan, Meralco Vice Chairman and MGEN Director Lance Gokongwei, MGEN President and CEO Emmanuel Rubio.

Gapan and Peñaranda, Nueva Ecija, Philippines, November 21, 2024 – Terra Solar Philippines, Inc. (TSPI), together with Meralco PowerGen Corporation (MGEN) and SP New Energy Corporation (SPNEC), officially broke ground for the MTerra Solar Project — the world’s largest integrated solar and battery storage facility. President Ferdinand R. Marcos Jr. and Meralco Chairman and CEO Manny V. Pangilinan (MVP) co-led the groundbreaking ceremony, alongside leaders from Meralco, MGEN, SPNEC, and Actis.

“Today we take a leap towards the future driven by innovation and sustained by our collective hope for a cleaner and greener Philippines. We stand together at the site of what will become the largest integrated solar and battery storage facility in the world – the MTerra Solar Project. This landmark project will put our country on the map as a leader in renewable energy,” President Marcos Jr. said during the ceremony.

“The MTerra Solar power project is designed to address two critical challenges of our time: the surging demand for electricity and the pressing need to shift to renewable and sustainable sources of energy,” he added.

With construction now in full swing, the landmark project represents a transformative leap forward in the Philippines’ quest for a cleaner and more sustainable energy future.

Spanning an impressive 3,500 hectares (almost the same size as Pasig City) across Nueva Ecija and Bulacan, the US$4.0 billion (over Php 200 billion) MTerra Solar Project will involve 3,500 megawatts peak (MWp) photovoltaic (PV) capacity, complemented by a 4,500 megawatt-hours (MWhr) Battery Energy Storage System (BESS) capacity. The project will be located in five towns – Gapan, General Tinio, , Peñaranda, and San Leonardo all in Nueva Ecija, and San Miguel, Bulacan.

Upon completion, MTerra Solar is expected to supply clean energy to approximately 2.4 million households and avoid carbon emissions by an estimated 4.3 million tons annually – equivalent to removing over 3 million gasoline-powered vehicles from the roads every year.

This milestone project aligns seamlessly with the government’s goal of achieving a 35% renewable energy mix by 2030 and 50% by 2040. As of late 2023, the country’s installed renewable energy capacity stands at almost 30% of total energy mix, underscoring the urgency for stakeholders to accelerate efforts toward a greener energy future.

“Numbers alone fail to articulate the full significance of this project, we are making a statement today that the Philippines is not only keeping pace with the global energy transition but more so express our intention, the Philippines’ intention to lead the migration from thermal to renewables,” Mr. Pangilinan said.

“We will build, we will take action, and we will never stop daring. At the end, this is all showing the world what Filipinos can achieve when the public and private sectors work together with focus and urgency,” he added.

Meralco, the country’s largest power distribution utility, continues to be at the forefront of renewable energy development. Through its subsidiaries, MGEN and its renewable energy arm — MGEN Renewable Energy, Inc. (MGreen), the company continues to pursue strategic initiatives to diversify the Philippines’ clean energy supply and manage dependence on fossil fuels. The MTerra Solar Project exemplifies this commitment, cementing Meralco’s leadership in renewable energy innovation.

The MTerra Solar Project is set to deliver clean solar energy under a 20-year, 850 MW midmerit power supply agreement to Meralco. The initial block of 600 MW is slated for delivery by February 2026, while the remaining 250 MW will follow in February 2027. This not only conforms with the Renewable Portfolio Standards of the Department of Energy (DOE) but also reinforces Meralco’s pledge to source 1,500 MW of its power supply requirements from renewable energy.

Prior to the groundbreaking ceremony, TSPI, acting as the investment and development vehicle for the MTerra Solar Project, has entered into a strategic partnership with UK-based Actis for a 40% interest in the project valued at US$600 million (approximately Php 34 billion) — the largest foreign direct investment for a greenfield infrastructure project in the Philippines to date. Recently, TSPI awarded the Engineering, Procurement, and Construction (EPC) contract for the project to China Energy Engineering Corporation (Energy China), a key player
in global infrastructure and sustainable energy. TSPI also engaged Meralco Industrial
Engineering Services Corp. (MIESCOR) to link the flagship solar development to the Luzon power grid.

These key agreements demonstrate the project principal’s drive for excellence and
commitment to ensuring that project milestones are effectively executed and delivered on time.

As the Philippines accelerates its transition toward renewable energy, the MTerra Solarproject stands as a beacon of progress, innovation, and sustainability—securing the nation’s energy future and powering a cleaner, greener tomorrow for the Filipino people.

About MGEN
Meralco PowerGen Corporation (MGEN) is a leading power generation company in the Philippines key subsidiaries, Global Business Power (MThermal), MGEN Renewable Energy, Inc. (MGreen), and PacificLight, a modern and efficient Liquefied Natural Gas (LNG) facility in Singapore. It is the power generation arm of the Manila Electric Company (MERALCO), the largest private electric distribution utility in the Philippines.

We power the good life of the Filipinos by being at the forefront of the energy transition, focusing on cleaner and more sustainable energy sources. The Company invests in a mix of thermal, renewable, and low-carbon energy solutions, including natural gas, to ensure stable and reliable power generation.

To know more about MGEN and its subsidiaries, please visit MGEN and follow us on LinkedIn.

The post MTerra Solar Project Breaks Ground: A Monumental Milestone in the Philippines’ Renewable Energy Transition first appeared on Terra Solar Philippines, Inc..

MGen and SPNEC Announce Strategic Partnership; Actis Invests in 40% Equity Stake in MTerra Solar

Ron Del Pilar — Tue, 10 Sep 2024 06:08:23 +0000

Metro Manila, Philippines, 6th September 2024 – Meralco Powergen Corporation (“MGEN”) and its subsidiary, Solar Philippines New Energy Corporation (“SPNEC”) have agreed to enter into a strategic partnership with Actis to invest in a 40% equity stake in Terra Solar Philippines, Inc. (“MTerra Solar”) – poised to be the biggest integrated renewables and energy storage power plant in the world.

SPNEC will cause the issuance of MTerra Solar shares equivalent to a 40% equity stake upon closing in MTerra Solar for a total consideration of c.US$600 million to Actis, a leading global investor in sustainable infrastructure with deep project execution and contract management expertise. The proceeds will be used to jointly develop and expand MTerra Solar.

About MTerra Solar
MTerra Solar is the world’s largest integrated renewables and energy storage project1, with 3,500MWp of installed PV capacity and 4,500MWh of installed BESS capacity. The project is expected to cover c.3,500 hectares. Around 2.4 million households in the Philippines will be powered by MTerra Solar.

In line with the government’s vision to increase renewable energy generation to 35% by 2030, MGEN and SPNEC are paving the way for MTerra Solar that would accelerate its footprint in the green energy space and significantly expand its power generation portfolio.
MTerra Solar Project Highlights

• Largest integrated renewables and energy storage project in the world1, with 3,500MWp of installed PV capacity and 4,500MWh of installed BESS capacity (largest globally)
• Largest mid-merit renewables generation capacity in the Philippines of 850MW
• Largest Foreign Direct Investment of over US$600 million for a greenfield Infrastructure project in Philippines
• Partnership with Actis, a leading global Sustainable infrastructure investor with a proven and credible track record
• Upon full commissioning, the MTerra Solar project is expected to displace 4.3 million tons of coal per year2, in line with Philippine’s net zero targets and 35% RE mix by 2030

Manuel. V. Pangilinan, Chairman and CEO of Manila Electric Company (“MERALCO”), parent company of MGEN, said: “MTerra Solar is one of the most ambitious renewables projects the world has ever seen. We are looking forward to contributing to the Government’s goal to have 35% of the country’s energy to come from renewable energy.”

Emmanuel V. Rubio, President and CEO of MGEN and SPNEC, commented: “We are delighted to be partnering with Actis, a world-class investor of sustainable infrastructure, in this monumental project. We look forward to the combined expertise of Meralco Power Generation, SPNEC and Actis that will bring the MTerra Solar project into reality.”

Lucy Heintz, Partner, Head of Energy Infrastructure at Actis, commented: “The scale of the MTerra Solar Project and its capacity to provide clean power is enormous. It’s the single biggest such project in the world and Actis’ investment in the project marks an exciting moment. As a new investor in the project, Actis will bring its decades’ worth of expertise investing in global scale energy generation. We’re in the business of building and operationalising world-class energy assets both to accelerate the energy transition and deliver value for our investors. This investment will do that, on a truly significant scale.”

Rahul Agrawal, Head of Energy for Southeast Asia at Actis, said: “Southeast Asia represents some of the most dynamic economies globally and the region’s energy transition is picking up speed. Philippines is showing real purpose on the energy transition and no project represents this more than the MTerra Solar Project. It will co-locate solar PV with battery storage on a scale the region hasn’t seen before, backed by a sizeable PSA, to deliver a stable renewable power supply to the main grid of Luzon in the Philippines. MGen and its management team’s vision for this project is truly exceptional and we are excited about the partnership with MGen to together build this landmark project.”

Transaction completion is subject to the satisfaction of certain conditions precedent, including the relevant regulatory approvals, and is expected to be completed by Q1 2025.

UBS AG Singapore Branch acted as financial advisor to SPNEC. Latham & Watkins and Picazo Law acted as international and domestic legal counsel to SPNEC.

About Meralco
Meralco is the largest private sector DU in the Philippines covering 39 cities and 72 municipalities with a franchise area of c.9,685km2, which accounts for c.55% the Philippines’ electricity consumption. MERALCO is listed on the Philippine Stock Exchange (“PSE”), with a market capitalization of US$8.1bn / PHP 457.5bn as of 5 Sep 2024. MERALCO’s principal shareholders are Beacon Electric Asset Holdings, Inc. 34.96%, Metro Pacific Investments Corporation 12.50%, JG Summit Holdings, Inc. 26.37%, and Others (including free float) 26.17%.

About MGen
MGen is a wholly owned subsidiary of Meralco, the country’s largest private sector electric distribution utility company. The growing MGen group, with a total power generation gross capacity of 2,425 MW that utilize coal, liquified natural gas, diesel, and solar technologies, is capable of supplying base, intermediate, peak load, and ancillary support. To support the country’s transition towards a sustainable future, MGen puts a premium to its goal of adding 1,500MW of renewable energy to its current portfolio. MGen owns and operates its Renewable Energy projects under its Renewable Energy arm, MGREEN.

About SPNEC
SPNEC is an integrated developer, owner and operator of solar power projects in the Philippines. SPNEC is PSE-listed with a market capitalisation of US$1.2bn / PHP 65.1bn as of 5 Sep 2024. SPNEC is a subsidiary of Meralco and specialises in creating value through land identification, acquisition and conversion, which is used to develop solar project.

About Actis
Actis is a leading global investor in sustainable infrastructure, delivering competitive returns for institutional investors and measurable positive impact for countries, cities, and communities in which it operates. Actis invests in structural themes that support long-term, equitable growth in defensive, critical infrastructure across energy transition, digitalisation transition, and supply chain transformation.

The firm’s decades of global experience, operational know-how and strong culture allows it to create global sustainability leaders at scale. Since inception, Actis has raised US$ 25 billion to invest in a better tomorrow. Actis is a signatory to the Principles for Responsible Investment (PRI), an investor initiative supported by the United Nations.

The post MGen and SPNEC Announce Strategic Partnership; Actis Invests in 40% Equity Stake in MTerra Solar first appeared on Terra Solar Philippines, Inc..

Terra Solar Philippines draws foreign interest in P200-B solar project — SPNEC

Ron Del Pilar — Thu, 29 Aug 2024 02:27:31 +0000

SP New Energy Corp. (SPNEC) said around five foreign investors are keen on investing in Terra Solar Philippines, Inc., which is building a P200-billion solar project.

“About five have expressed interest,” SPNEC President and Chief Executive Officer Manuel V. Pangilinan told reporters on Tuesday.

“They’re now talking to several foreign investors. Nothing definite yet,” he added.

He said that SPNEC can sell up to 40% to foreign investors, but it will only accept two investors, each with a 20% stake.

Asked about the valuation, he said that there are already indicative numbers, “but it’s too early to tell anybody.”

Sought for comment, Juan Paolo E. Colet, managing director at China Bank Capital Corp., said that having a high-quality foreign partner can significantly contribute “to ensuring the success of Terra Solar and its massive energy project.”

“A well-established investor that brings a combination of financial resources and technical expertise would be the best fit for the company,” he said in a Viber message.

The company is seeking investors for Terra Solar to secure additional financing for the solar power project, which is estimated to require P200 billion.

SPNEC took full control of Terra Solar after acquiring the entire stake of Prime Infrastructure Holdings, Inc., or Prime Infra, last year for P6 billion.

Established in 2020, Terra Solar was a 50-50 joint venture between Prime Infra and Solar Philippines Power Project Holdings, Inc., the parent firm of SPNEC.

The Terra Solar project in Nueva Ecija and Bulacan consists of a 3,500-megawatt solar power plant and a 4,000-megawatt hour energy storage system. It is expected to generate more than five billion kilowatt-hours of electricity per year.

The first phase of the project is scheduled to be delivered by the first quarter of 2026.

SPNEC is now controlled by the Pangilinan group, through MGen Renewable Energy, Inc., the renewable energy development arm of Meralco PowerGen Corp., a wholly owned subsidiary of Manila Electric Co. (Meralco).

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.

The post Terra Solar Philippines draws foreign interest in P200-B solar project — SPNEC first appeared on Terra Solar Philippines, Inc..

MGreen’s Terra Solar Project gets BOI’s Green Lane Certificate

Ron Del Pilar — Thu, 29 Aug 2024 02:19:50 +0000

In line with the Philippine government’s thrust for a more diversified and balanced energy mix to address the nation’s energy security concerns, the Board of Investments (BOI) has given MGen Renewable Energy, Inc. (MGreen), the renewable energy arm of Meralco PowerGen Corporation (MGen), a Green Lane Certificate of endorsement for its Terra Solar Project last August 5, 2024.

The Terra Solar project situated in Bulacan and Nueva Ecija pioneers a 3,500 MWp solar power capacity and 4,500 MWh Battery Energy Storage System (BESS). The project is set to become the largest contiguous solar power plant in the world.

The project supports the government’s goal of gradually increasing the proportion of renewable energy in the country’s overall power generation mix to 35% by 2030 and 50% by 2040.

Emmanuel V. Rubio, President and CEO of MGen, stated that receiving the Green Lane Certificate for the Terra Solar project underscores MGen’s commitment to excellence, innovation, and environmental stewardship. He said the certificate also highlights the collective efforts in prioritizing projects that not only accelerate the country’s low-carbon transition but is also in tune with government’s drive to ensure energy security.

“Moving from conventional to renewable energy requires more than just a paradigm shift, a change in mindset. It requires collaboration between the public and private sectors to drive the development of green energy projects. We are grateful for the support extended by the BOI and DTI. Without them on board, this achievement would not have been possible,” Rubio continued.

Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo emphasized that the government, following Executive Order 18, is fully committed to green projects like Terra Solar. He also revealed the board approval of the project’s registration under the BOI, reinforcing the government’s all-out commitment to the Terra Solar Project across all levels.

Dennis B. Jordan, President and CEO of MGreen, thanked the BOI for their unwavering support and leadership in championing green investments. “More than a recognition, the Green Lane Certification stands as a testament to our dedicated pursuit of pioneering projects that synergize economic growth and ecological preservation,” he said.

“This project brings forth the benefits of producing clean, sustainable energy whilst generating employment opportunities, promoting economic growth, and enriching the quality of life in our communities,” Jordan added. The awarding of the Green Lane Certificate comes after the Terra Solar Project received a Certificate of Energy Project of National Significance (CEPNS) from the Department of Energy (DOE) last 23 July 2024. The project is set to be completed in two phases: the first phase is expected to finish in February 2026 and the second phase in 2027.

MGen is a wholly owned subsidiary of publicly listed power company, Manila Electric Company (Meralco). It owns and operates Global Business Power Corporation and MGreen, focused on using advanced and highly efficient technologies that enables it to provide reliable and cost-competitive power supply to its customers.

The post MGreen’s Terra Solar Project gets BOI’s Green Lane Certificate first appeared on Terra Solar Philippines, Inc..

Terra Solar gets BOI green lane certification

Ron Del Pilar — Thu, 29 Aug 2024 02:11:37 +0000

MANILA, Philippines — Terra Solar Philippines Inc. (TSPI) has secured green lane certification from the Board of Investments (BOI) for its P185 billion solar project in Nueva Ecija and Bulacan.

In a statement, the BOI said the green lane certification for TSPI’s solar project was awarded on Aug. 5.

BOI managing head and Trade Undersecretary Ceferino Rodolfo said the project has also been approved for registration under the investment promotion agency.

TSPI is a subsidiary of SP New Energy Corp. and MGen Renewable Energy Inc. (MGreen), the renewable energy unit of Meralco PowerGen Corp. (MGen).

The green lane certification will allow the project to enjoy streamlined and expedited approval and processing for permits.

Spanning 3,500 hectares across Nueva Ecija and Bulacan, the project is set to become the world’s largest solar project and revolutionize the country’s renewable energy sector.

Through the project that will be implemented in two phases, the aim is to generate 3,500 megawatts of solar power with a 4,500-megawatt-hour battery energy storage system.

The target commercial operations date for the first phase is February 2026, while the second phase is scheduled to commence operations by February 2027.

Rodolfo said TSPI’s project supports the transformation of the country’s economy.

“The basic objective of the Philippines now under this administration is not just to grow – we are already the fastest-growing economy in the region – but more importantly to transform the Philippine economy into a smart and sustainable hub for manufacturing and services and exactly supporting that would be the sectors and industries that you are investing in,” Rodolfo said.

Last July 23, TSPI’s project also received a certificate of energy project of national significance from the Department of Energy.

A national energy project is deemed significant when its capital investment exceeds $59 million and contributes to the economic growth of the country by improving energy access and supply security.

“Having the green lane certificate is a testament to our commitment to excellence, innovation and environmental stewardship. It’s also a recognition of our collective efforts to prioritize and fast track projects that will accelerate the country’s low carbon transition – and this one is expected to deliver by February 2026,” MGen president and CEO Emmanuel Rubio said.

The post Terra Solar gets BOI green lane certification first appeared on Terra Solar Philippines, Inc..