Meralco PowerGen Corporation ( MGen ), a wholly owned subsidiary of power distribution giant Meralco, through its affiliate Terra Solar Philippines ( MTerra Solar ), has closed its 150 billion Philippine peso ( US$2.65 billion ) syndicated loan to fund its Terra Solar project.

The project, which MGen has touted to be the world’s biggest integrated solar and battery energy storage project, will be developed in Nueva Ecija and Bulacan, and it is expected to deliver some 3,500 megawatt ( MW )-peak of solar and 4,500 MW-hours of battery energy storage capacity, with the first phase of the project, which has a target capacity of 2,500MW, aiming for completion by 2026.

“[This project] is a critical step in meeting the country’s goal of 35% renewable energy share by 2030 and 50% by 2040,” MGen points out, and it is already 35% completed as of end-March 2025. Once completed, MTerra Solar will supply 850MW of mid-merit renewable energy to Meralco under a power supply agreement.

The project is expected to supply clean energy to approximately 2.4 million households, MGen estimates, while also contributing to carbon reduction by avoiding 4.3 million tonnes of emissions annually.

The project loan was backed by BDO Unibank, Security Bank, China Banking Corporation, Philippine National Bank, Metropolitan Bank and Trust, and Bank of the Philippine Islands.

BDO Capital & Investment Corporation was the sole mandated lead arranger, with BDO Unibank’s trust and investments group serving as facility agent and security trustee.

The development comes a month after MGen’s renewable energy arm, Mgen Renewable Energy, finalized a US$600 million deal with United Kingdom-based investment firm Actis.