MERALCO PowerGen Corp., (MGEN) the power generation arm of Manila Electric Co. (Meralco), said the first phase of its Terra Solar power project was on track for completion by August, with additional capacity to come online in the coming weeks.
MGEN said the staged rollout was part of efforts to bolster the country’s power grid, particularly now that the El Niño weather phenomenon was beginning to be felt across the country.
Dennis Jordan, president and CEO of MGEN's MGen Renewable Energy Inc. (MGreen) and Terra Solar Philippines Inc. (MTerra Solar), said one block of the project had already been energized.
Two additional blocks are expected to come online within the next two weeks.
Jordan added that the rollout was being coordinated with the Department of Energy (DOE) with the support of National Grid Corp. of the Philippines (NGCP).
“We’re on track to delivering it by August,” Jordan said, adding that around 500 megawatts will be ready to go online following the required testing. “So it’s ready to support the grid.”
He noted that the initial phase could bring total capacity to around 750 megawatts, with an additional 1,000 megawatts expected in succeeding stages.
Jordan said Phase 2 was also on schedule, with initial capacity targeted for delivery by December. He added that preparations for further rollout in February were ongoing.
“There are challenges, but we have work ahead of us,” he said, citing manpower constraints, weather conditions during the rainy season, and permitting requirements as key risks.
Coordination with government agencies, including the DOE and local government units, has helped facilitate permitting requirements, though external factors such as weather remain a concern, Jordan said.
He confirmed that discussions on a “Terra Solar 2” were ongoing but declined to provide further details, saying the proposed project formed part of a broader expansion strategy.
He said the company was targeting a long-term power portfolio expansion to bring capacity to around 10,000 megawatts, from about 4,900 megawatts in 2024 to roughly 10,600 megawatts in the coming years, without specifying any particular date.
He said the expansion would be driven by coal, liquefied natural gas and renewable energy assets, with renewables expected to post the fastest growth.
Renewable capacity is projected to expand from 408 megawatts to about 3,400 megawatts in the next two years, driven by solar, battery storage and potential wind projects.
Jordan added that the group was exploring joint ventures with partners, including ACWA Power and Vena Energy, while assessing opportunities in both onshore and offshore wind.
On capital expenditure, Jordan said Terra Solar remained the group’s largest investment so far – at a cost of about $4 billion or roughly P200 billion – and that the project was supported by a syndicated financing package involving multiple banks.
He said most construction and equipment deliveries would be completed this year, with Phase 2 targeted for completion by the first quarter of next year in line with MGEN’s commitment to Meralco.
Meralco shares on fell by P4.50, or 0.74 percent, to close at P600 each.
Markets were closed in the Philippines on Wednesday in observance of a public holiday.
