Terra Solar Philippines’ (MTerra Solar) ₱200-billion worth solar and battery facility is expected to start operations in the first three months of 2026, according to BDO Unibank, Inc., the biggest lender to the multi-billion-peso project finance facility.

Earlier this year, MTerra Solar, a unit of SP New Energy Corporation (SPNEC), secured a ₱150 billion omnibus loan and security agreement (OLSA) with six local banks.

The 15-year loan was settled between BDO, Bank of the Philippine Islands (BPI), Philippine National Bank (PNB), Security Bank Corporation, China Banking Corporation (China Bank), and Metropolitan Bank & Trust Company (Metrobank).

In a June 13 statement, the BDO said the MTerra Solar will be completed in two phases. Under its power supply agreement (PSA) with Meralco, the first phase will deliver 600 MWac, followed by the second phase, which will include 250 MWac of mid-merit renewable energy.

Previous reports by Manila Bulletin noted that the total project funding is anticipated to be the world's largest solar and battery facility in Central Luzon.

“This project is set to commence commercial operations in the first quarter of 2026 for Phase 1,” BDO said.

To date, the project has reached 35 percent overall progress, marked by the ongoing construction of the substation, continued site development, and the start of assembling structures for the solar panels.

This landmark project, designed to help meet the country’s rising power demand, is expected to supply clean energy to around 2.4 million households.

Once completed, MTerra Solar is projected to reduce carbon emissions by approximately 4.3 million tons annually, equivalent to removing at least three million gasoline-powered cars from the road.

Spanning over 3,500 hectares in Nueva Ecija and Bulacan, the project will also involve constructing a 13-kilometer, 500-kilovolt transmission line to connect the solar facility to the national grid.

“As the world’s largest solar project and a first in the Philippines, it was essential to partner with

the country’s largest bank, BDO,” said Emmanuel V. Rubio, president and CEO of Meralco PowerGen Corporation (MGEN).

MTerra Solar said it has the capacity to run the project but needs strong financial support from the country’s top banks to fund the development of this scale. Citing BDO Capital’s expertise in project finance, capital markets, and advisory services, the company tapped the bank to lead the loan arrangement due to the project’s complexity.

Dennis B. Jordan, president and CEO of MTerra Solar and MGEN Renewable Energy Inc., expressed his gratitude to all the project’s banking partners.

He stressed that the “trust and support” these lenders extended to the company “sends a strong message that local financing can drive world-scale renewable energy projects.”