ERC approves PHP 14.25-B grid link for MTerra Solar

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The Energy Regulatory Commission (ERC) has approved Terra Solar Philippines, Inc.’s (TSPI) application to build dedicated transmission facilities for the MTerra Solar Project, the country’s largest planned solar-plus-storage installation.

In a decision issued Oct. 8, 2025, the ERC authorized the development of point-to-point facilities that will connect the 3,500-megawatt (MW) solar and 4,500-megawatt-hour (MWh) battery system to the Luzon grid.

The transmission link will pass through the Nagsaag–San Jose 500-kilovolt (kV) line and the upcoming San Isidro 500-kV substation, enabling power delivery from project sites in Nueva Ecija and Bulacan.

According to the ERC, the value of the interconnection facilities is estimated at PHP 14.25 billion, with about 90% of the work completed as of September 2025.

“The Commission inspection team found the dedicated transmission facilities about 90% completed as of September 2025,” the ERC said in its order.

The agency also assessed a permit fee of PHP 106.86 million based on the estimated project cost and directed TSPI to submit compliance documents and finalize its operational agreement with the National Grid Corporation of the Philippines (NGCP).

TSPI’s request to operate and maintain the facilities was denied, with the ERC stating, “NGCP shall operate and maintain the subject facilities, subject to applicable charges to TSPI.”

The MTerra Solar Project is backed by PHP 200 billion in capital and is scheduled to begin commercial operations in two phases—February 26, 2026, for Phase 1, and February 26, 2027, for Phase 2.

Once operational, the project will supply up to 850 MW of baseload solar power under its power supply agreement with the Manila Electric Company (Meralco).

TSPI is a wholly owned subsidiary of SP New Energy Corporation (SPNEC), which is majority controlled by MGEN Renewable Energy, Inc. (MGEN Renewables), a Meralco-led entity.

The project has attracted USD 600 million in foreign investment and continues site development in anticipation of its commissioning milestones.

The ERC approval reinforces the government’s commitment to expanding clean energy infrastructure and accelerating private-sector participation in grid modernization.