250 MW photovoltaic (PV) installation and 450 MWh of battery energy storage system (BESS) has been powered on by MTerra in the Philippines as part of what is set to become the world’s largest integrated solar-plus-storage project. The development marks the first operational phase of a massive 3.5 GW solar and 4.5 GWh battery project in Luzon ahead of full Phase 1 completion by end of this year. According to Philippines’ DOE, the project also positioning MTerra at the center of the country’s strategy to strengthen energy security, stabilize the grid, and reduce reliance on imported fuels amid global market volatility.

Project Overview: MTerra Hybrid Solar and Storage for Grid Stability

Solar capacity: 250 MW

Battery storage: 450 MWh

Technology: Solar PV and lithium-ion battery storage

Grid role: Mid-merit / dispatchable renewable power

This configuration allows solar energy to be stored during peak generation periods and deployed when demand rises or supply drops, ensuring a more stable and reliable electricity supply.

Importance of MTerra Hybrid Solar and Storage Project in the Philippines

Historically dependent on imported fossil fuels, the Philippines faces high electricity costs, exposure to global fuel price volatility, and grid instability during peak demand.

By developing large-scale storage with solar, the Philippines is addressing all three challenges.

Crucially, hybrid projects like this are also enabling solar to move beyond intermittent generation into reliable mid-merit capacity. This also bridges the gap between baseload and peaking power.

Technology Significance: Why Solar Plus Storage is Important

Battery storage is the defining feature of this development. According to industry analysis, integrating storage with solar:

• Smooths output fluctuations
• Provides grid services like frequency regulation, and voltage control
• Reduces need for additional transmission upgrades

In practical terms, the 450 MWh BESS enables:

• Evening peak supply using stored solar energy
• Backup during outages or grid stress
• Improved integration of renewables into the national grid

Fact Sheet for Energized MTerra Hybrid Solar and Storage Project in the Philippines

Capacity: 250 MW and 450 MWh storage: 

Grid connection: Luzon grid

Function: Dispatchable renewable energy

Construction phases: 2

Project status: Under construction

Expected Phase 1 completion: 2026

Role: Grid stability and energy independence

Project Team Supporting Development and Construction

Developer

• Terra Solar Philippines Inc. (MTerra Solar)

Sponsors

• Meralco PowerGen Corporation (MGEN)
• SP New Energy Corporation (SPNEC)

Equity

• Actis with 40% stake

EPC Contractors

• Energy China
• Guangdong Electric Power Design Institute
• GEDI Construction Development Corp

Government

• Philippine Department of Energy
• DENR

Financial Institutions

• BDO Unibank
• Metrobank
• China Banking Corporation