Meralco PowerGen Corp. (MGen) is exploring real estate investment trust (REIT) options to unlock more value from its renewable energy projects.

MGen President and Chief Executive Officer Emmanuel Rubio said in an interview that a REIT—which allows companies to generate steady income from real estate assets such as land—is a viable option once the massive Terra Solar project is operational.

The 3,500-hectare Terra Solar project, slated to become the world’s largest hybrid solar project, is expected to deliver approximately 2,500 megawatt-peak (MWp) of capacity during its first phase, alongside a 3,300 megawatt-hour (MWh) battery energy storage system (BESS). The project currently covers six municipalities in Nueva Ecija and Bulacan.
“What we’re doing now is bidding out MGen Renewables with more land. In fact, in Nueva Ecija alone, we were able to purchase more than 400 hectares more, then 50 hectares additional,” Rubio said.

He explained that merging all assets under MGen Renewables would create greater value for the company and boost its credibility in terms of both capacity and capability.

“When we deliver the first phase of Terra Solar, then investors [and] the public will know that we’re capable of delivering our promise,” he noted, adding that they are aiming to launch the REIT “maybe middle of next year or the third quarter of 2026.”

Rubio also reiterated plans to expand the large-scale solar and BESS facility through Terra Solar 2; however, he noted that this may be located in multiple areas.

“I don’t think Terra Solar 2 has to be in one location. It has to provide mid-merit [power], but it can be in multiple locations, as long as it’s providing that profile of mid-merit that will meet the requirement of any distribution utility (DU) or electric cooperative (EC).”

To make Terra Solar 2 viable, Rubio stated the facility should be at least 1,500 megawatt-alternating current (MWac), which would occupy around 2,200 hectares of land.