Terra Solar Philippines, a subsidiary of SP New Energy Corp. (SPNEC), has commenced construction on the world's largest solar and battery power facility in the Philippines, following a successful contract with a Chinese energy firm.

The groundbreaking ceremony, held on Thursday, Nov. 21, marked the beginning of development for the 3,500 megawatt (MW) solar plant and 4,500 MW-hour Battery Energy Storage System (BESS).

According to the Department of Energy (DOE), the first phase will develop 2,500 MW of capacity.

Once operational, the facility will generate over five billion kilowatt-hours of electricity annually, significantly impacting the Luzon grid. This will reduce reliance on fossil fuels and promote clean, sustainable energy.

Energy Secretary Raphael P.M. Lotilla said the project will accelerate the country's low-carbon shift and boost economic development through job creation.

The DOE also expects employment opportunities throughout the project lifecycle, from construction to long-term operations, including roles in engineering, construction, manufacturing, maintenance, solar plant management, battery storage systems, and transmission infrastructure.

“This major investment in solar and energy storage technology is a crucial step toward achieving our goal of increasing the share of renewables in the energy mix, reducing our carbon footprint, and addressing electricity demand in Luzon,” Lotilla said.

“It not only enhances our energy security and resilience but will also contribute to our broader economic development by creating jobs and promoting sustainable growth,” he added.

The project will span over 3,500 hectares across Nueva Ecija and Bulacan, specifically in the towns of Gapan, General Tinio, Penaranda, and San Leonardo (Nueva Ecija), and San Miguel (Bulacan). This area is comparable in size to Pasig City.

Valued at P200 billion, the facility will supply green energy to an estimated 2.4 million households, reducing carbon emissions by 4.3 million tons annually—equivalent to taking over three million gasoline-powered vehicles off the road each year.

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

Under a 20-year power supply agreement with Manila Electric Company (Meralco), the initial 600 MW block will be delivered by February 2026, with another 250 MW to follow in February 2027.

Terra Solar has partnered with UK investment firm Actis, which acquired a 40 percent interest in the project for P34 billion. The company also recently signed an Engineering, Procurement, and Construction (EPC) contract with China Energy Engineering Corporation (Energy China).