Meralco PowerGen Corp. (MGEN), the power generation arm of Manila Electric Co. (Meralco), has begun commercial operations of the first phase of its P200-billion MTerra Solar Project.

In a statement issued Thursday, MGEN said MTerra Solar Phase 1 declared commercial operations on Aug. 26, after the National Grid Corp. of the Philippines (NGCP) granted the facility its final certificate of approval to connect.

According to MGEN, NGCP approved the connection once the facility met the requirements to safely and reliably connect and operate 950 megawatts alternating current (MWac) of solar capacity along with an 825-megawatt (MW) battery energy storage system within the national grid.

"By combining solar power with battery storage at an unprecedented scale, we're demonstrating how renewable energy can strengthen energy security, support economic growth, and build a more resilient and sustainable power system for our country," MGEN Chairman Manuel V. Pangilinan said.

The MTerra Solar Project comprises a 3,500-megawatt-peak (MWp) solar farm and a 4,500-megawatt-hour (MWh) battery energy storage system. MGEN said the project is set to become the world's largest integrated solar power project once completed. The pairing of large-scale solar with battery storage addresses one of the main challenges of solar power in the Philippines, where sunlight-dependent generation must be matched to round-the-clock demand; the storage component allows energy generated during the day to be dispatched during evening peak hours, and the mid-merit role the project will fill typically calls for steady, dispatchable supply over long periods of the day.

The facility spans roughly 3,500 hectares across five municipalities in the provinces of Nueva Ecija and Bulacan. In July, the company said, approximately 1,373 MWac of solar photovoltaic capacity and 825 MW of battery storage capacity were energized.

The project's second phase is scheduled for completion next year and is expected to help MGEN exceed its 1,500-MW renewable energy capacity target by 2027. The expansion forms part of broader efforts in the Philippine power sector to shift the generation mix toward renewable energy, in line with the country's target of raising the share of renewables in the power mix to 35% by 2030 and 50% by 2040.

Once fully completed, MTerra Solar is expected to supply 850 MW of mid-merit renewable energy to Meralco under a power supply agreement, delivering electricity equivalent to the consumption of about 2.4 million households, MGEN said.

"Reaching commercial operations reflects the determination, discipline, and exceptional work of thousands of people who helped bring this landmark facility to life," MGEN President and Chief Executive Officer Emmanuel V. Rubio said.

"It also demonstrates what can be achieved when government and the private sector work together toward a shared national purpose," he added.

Meralco's controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera