Deal factsCountry: Philippines · Technology: Solar plus storage · Stage: Commissioning · Size: 600 MWac of 3,500 MWp / 4,500 MWh · Value: US$600m (Actis) · Parties: MGEN, Actis, Meralco
Meralco PowerGen Corporation (MGEN) has declared commercial operations at the first phase of its MTerra Solar project in the Philippines, with 600 MWac of mid-merit capacity now delivering power to Manila Electric Company (Meralco) under a power supply agreement. The milestone, announced on 3 September, took effect on 26 August 2026 and comes less than two years after groundbreaking in November 2024. A further 250 MWac is expected to be declared operational in the coming months, completing the 850 MWac obligation under the contract.
The project, spread across five municipalities in Nueva Ecija and Bulacan provinces north of Manila, is being developed by Terra Solar Philippines Inc, a joint venture between MGEN Renewable Energy, held through SP New Energy Corporation, and investor Actis. Actis holds a 40% stake and has committed US$600 million, described by the partners as the largest foreign direct investment in a greenfield infrastructure project in the Philippines.
At the inauguration on 14 July 2026, 1,373 MWac of solar PV and an 825 MW battery energy storage system holding 3,300 MWh had already been energised. The National Grid Corporation of the Philippines has approved the 825 MW battery system for grid connection, allowing the plant to shift solar output into the evening, which is what the mid-merit designation in the Meralco contract requires. At full build-out the site will host 3,500 MWp of solar paired with 4,500 MWh of storage, which the developers say makes it the largest integrated solar and battery facility at a single location in the world. Phase 2 is expected in 2027.
MGEN projects that the completed plant will serve roughly 2.4 million households and avoid about 4.3 million tonnes of carbon dioxide emissions a year. Brokerage AB Capital Securities, quoted by Philstar, noted that the start of billing turns MTerra from a construction story into an earnings driver for Meralco’s generation arm, although early contributions may be offset by higher depreciation and interest costs. Actis managing director Rahul Agrawal said that reaching commercial power for Phase 1 “in under two years is huge”.
Why does this matter?
MTerra is the largest integrated solar and battery plant at a single site anywhere, and its first phase moved from groundbreaking to contracted revenue in under two years. For developers and lenders across Southeast Asia it sets a benchmark for build speed, offtake structure and storage sizing on mid-merit contracts.
What happens next?
The remaining 250 MWac of Phase 1 is due to be declared commercially operational in the coming months, taking contracted deliveries to Meralco to the full 850 MWac. Construction continues on Phase 2, which the partners expect to bring online in 2027 as the project builds towards 3,500 MWp of solar and 4,500 MWh of storage.
Sources: Meralco PowerGen: MTerra Solar Phase 1 Begins Commercial Operations; Context.ph: MTerra Solar Phase 1 starts commercial operations: 600 MW delivered to Meralco; Philstar: MTerra Solar Phase 1 begins commercial operations.
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