The Philippines inaugurates first phase of massive solar-storage project

An inauguration ceremony for the first phase of the MTerra Solar project, a large-scale solar-plus-storage facility in the Philippines, has taken place.

Located in the provinces of Nueva Ecija and Bulacan on the Philippine island of Luzon, the project will deliver 3.5 GW of solar capacity, backed by 4.5 GWh of energy storage, once completed, making it one of the world’s largest hybrid solar-storage facilities.

The first phase of the project has energized 1,373 MW of solar and 825 MW of battery energy storage, equivalent to 3.3 GWh. A total 741 battery units have been fully energized.

According to an update posted by Meralco PowerGen Corporation, the maximum export capacity to the Luzon grid remains at 750 MW pending completion of various works done in collaboration with the grid operator. 

Following completion of required grid tests, the facility is ready to fulfil its 600 MW mid-merit power supply agreement with electric power distribution company Meralco. The agreement has been billed as Meralco’s lowest-cost mid-merit agreement in its energy supply mix.

Speaking during the inauguration ceremony, Ferdinand R. Marcos Jr, President of the Philippines, said the first phase of works is expected to be fully commercially available by August this year, while the expected completion for the second phase of works remains scheduled for next year.

He added that the inauguration “comes at a time when the need to boost our energy sector has never been more apparent or more urgent.”

“For years, our economy has relied heavily on conventional sources of power. Last year alone, coal accounted for 57% of the total power generation mix in our country, while renewable contributed only about 25%,” the President said.

“Such an energy mix leaves us more vulnerable to fluctuations in global fuel prices and developments in the international market, as we have experienced in the last few months and it underscores the importance of diversifying our energy sources, and how we must be committed to moving that mix in the direction to favor renewables.”

The Philippines is currently experiencing a surge in solar panel imports with residential and commercial customers looking to install solar as residential electricity tariffs rise to the highest in southeast Asia.

pv magazine profiled the MTerra Solar project in May, with Ajay Mullangi, principal at global infrastructure investor Actis, explaining the rapid rate of deployment has been made possible by the structuring of the project and a team of more than 10,000 workers on the project at its peak.