Meralco PowerGen Corp. (MGen) energized the first phase of its MTerra Solar facility on Tuesday, July 14, introducing an initial wave of renewable energy into the country’s main grid to help cushion consumers from peak nighttime electricity prices.

The power generation arm of Manila Electric Co. switched on 1,373 megawatts of solar photovoltaic capacity alongside 825 megawatts of battery energy storage, or 3,300 megawatt-hours of stored energy.

The initial phase is currently exporting power to the Luzon grid at a maximum capacity of 750 megawatts under coordination with the National Grid Corporation of the Philippines (NGCP).

While Meralco clarified that the newly energized facility will not immediately trigger an automatic drop in residential electricity rates, Manuel V. Pangilinan, who serves as Meralco’s chairman, said the project’s role is in mitigating volatile spot-market costs.

The mid-merit project is designed to sell stored solar power during high-consumption evening hours when electricity prices traditionally spike.

“The prices, it’s a curve. It goes up during the evening,” Pangilinan told reporters. “So, we could sell, and at the same time, bring down the price. Prices won’t be [at a] flat rate throughout the day if we sell out of the battery [storage] at night.”

The project’s off-taker is Meralco’s distribution utility business, which has contracted 600 megawatts of mid-merit supply. The second phase of the MTerra Solar project is scheduled to begin construction by March 2027.

“Beyond building one of the world's most significant renewable energy facilities, we are helping build a stronger and more resilient Philippine energy system capable of supporting the country's long-term economic growth,” said Emmanuel Rubio, president and chief executive officer of MGEN.

The greenfield development is backed by financial anchoring, including a historic ₱150-billion syndicated loan signed with major domestic lenders in 2025, alongside a 40 percent equity investment from global infrastructure investor Actis valued at approximately ₱34 billion.

Once fully completed, the MTerra Solar facility will span 3,500 hectares of land across Gapan, Peñaranda, General Tinio, and San Leonardo in Nueva Ecija, as well as San Miguel in Bulacan.