ERC Approves Terra Solar’s Transmission Facilities for Country’s Largest Solar and Battery Project

The Energy Regulatory Commission (ERC) has approved Terra Solar Philippines, Inc. (TSPI)’s application to develop and own dedicated transmission facilities for the MTerra Solar Project, set to become the largest solar and battery energy storage installation in the country.

In a decision issued on October 8, 2025, the ERC granted TSPI the authority to construct point-to-point interconnection facilities linking the 3,500-megawatt (MW) solar and 4,500-megawatt-hour (MWh) battery energy storage project in Nueva Ecija and Bulacan to the Luzon grid. The connection will be made through the Nagsaag–San Jose 500-kilovolt (kV) transmission line and the planned San Isidro 500-kV substation.

The regulator placed the value of the interconnection facilities at approximately PHP 14.25 billion, noting that construction was already around 90% complete as of September 2025. The ERC also imposed a permit fee of PHP 106.86 million, calculated based on the project’s estimated cost.

However, the Commission denied TSPI’s request to operate and maintain the facilities, stating that the National Grid Corporation of the Philippines (NGCP) will be responsible for operations and maintenance, subject to applicable charges.

TSPI, a wholly owned subsidiary of SP New Energy Corporation (SPNEC)—which is controlled by the Meralco group through MGEN Renewable Energy, Inc. (MGEN Renewables)—is spearheading the PHP 200-billion mega project.

According to the ERC’s inspection team, the transmission facilities are nearing completion, with Phase 1 of the MTerra Solar Project scheduled to begin commercial operations on February 26, 2026, and Phase 2 expected by February 26, 2027.

Once fully operational, the MTerra Solar Project will supply up to 850 MW of baseload solar power to Meralco under an existing power supply agreement. The ERC has directed Terra Solar to pay the permit fee, submit a compliance report, and finalize an operations and maintenance agreement with NGCP.

The project has already secured USD 600 million in foreign investment and continues to advance site development activities in preparation for its target commissioning dates, reinforcing the Philippines’ transition toward renewable and sustainable energy infrastructure.