For power investors in the Philippines, land acquisition and grid connection represent the most critical and frequently encountered risks leading to project delays.
Recently, the highly anticipated MTerra Solar project, the largest solar-storage initiative in the Philippines, secured grid connection approval from the Energy Regulatory Commission (ERC). The approval allows the developer to construct a dedicated point-to-point transmission facility connected to the Luzon grid.
The project is being developed by Meralco PowerGen (MGEN) and its subsidiary SP New Energy Corporation (SPNEC). UK investment firm Actis acquired a 40% stake in the project for $600 million. The engineering construction is being carried out by Energy China, PowerChina, and Meralco Industrial Engineering Services Corporation (MIESCOR).
Reportedly, the project is located in Nueva Ecija and Bulacan on Luzon Island, with a planned total capacity of 3.5 GW of solar power and 4.5 GWh of energy storage.
The first phase of the project includes 1.5 GW of solar power and 2 GWh of storage. As of July 2025, 54% of the first phase has been completed, exceeding expectations. In terms of transmission lines, construction progress reached 90% by September 2025. The dedicated transmission facilities are expected to connect to the existing 500 kV Nagsaag-San Jose transmission line and the San Isidro 500 kV substation.
