The Manila Electric Co. (Meralco) Group, led by tycoon Manuel V. Pangilinan, has commenced construction of the world’s largest solar farm in Luzon, signaling a significant step forward in the Philippines' renewable energy sector.
The project, spearheaded by SP New Energy Corp. (SPNEC), a subsidiary of Meralco PowerGen Corp., will feature a staggering 3,500 megawatts (MW) of solar panels and 4,000 MW-hours of battery storage. It is being developed across Nueva Ecija and Bulacan, positioning the facility as a global benchmark for large-scale solar energy production.
Increased Capital Expenditure
Pangilinan indicated that Meralco’s capital expenditure for 2025 will increase significantly, largely driven by investments in Terra Solar, the flagship initiative behind the solar farm.
For 2024, the group allocated ₱40 billion, and an even higher budget is anticipated for the following year. Meralco EVP and COO Ronnie Aperocho revealed that ₱25 billion has already been earmarked for the power distribution business alone in 2025.
“The bulk of this spending will focus on grid resilience and strengthening networks, especially with the increased frequency of storms hitting the Philippines,” Aperocho explained.
Record Performance and Optimism for 2025
Meralco is coming off a strong year, reporting a core net income of ₱35.1 billion for the first nine months of 2024, a 17% increase from the previous year. The company’s consolidated revenues also rose by 6%, reaching ₱355.4 billion.
Looking ahead to 2025, Pangilinan expressed confidence in sustained growth:
“I think it will be a better year next year for Meralco. The economy is doing okay under President Marcos. [We’re] always optimistic.”
Strengthening the Philippines’ Renewable Energy Goals
This groundbreaking solar farm supports the country’s National Renewable Energy Program (NREP) goals, aiming for a 35% share of renewable energy in the national energy mix by 2030 and 50% by 2040.
By combining massive solar energy generation with advanced battery storage, the Luzon facility is expected to stabilize energy supply, reduce reliance on fossil fuels, and enhance the resilience of the Philippine energy grid in the face of climate challenges.
The Meralco Group’s investments reflect a commitment to innovation and sustainability, cementing its role as a key player in the country’s energy transformation.
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