SPNEC awards MTerra Solar contract to Power China

MANILA, Philippines — SP New Energy Corp. (SPNEC) of tycoon Manuel V. Pangilinan has tapped Power Construction Corp. of China Ltd. (Power China) to develop a portion of the $4-billion MTerra Solar project in Central Luzon.

SPNEC, a subsidiary of Meralco PowerGen Corp. (MGen), inked an engineering, procurement and construction (EPC) contract with Power China and its affiliates to build the project’s east section spanning around 1,505 hectares.

SPNEC unit Terra Solar Philippines Inc. (TSPI) is constructing a 3,500-megawatt-peak (MWp) solar power plant paired with a 4,500-MW hour battery energy storage system, which is poised to become the largest of its kind in the world.

Straddling the provinces of Nueva Ecija and Bulacan, the solar facility covers about 3,500 hectares of land, equivalent to the size of around 83,300 basketball courts or almost the same size as Pasig.

MGen, the investment generation arm of power giant Manila Electric Co., took over the project in 2023 after acquiring a controlling stake in SPNEC through MGen Renewable Energy Inc.

“We sign this EPC agreement with Power China, recognizing their expertise, exceptional track record and unwavering commitment to excellence. We know that they will help us realize our bold ambition,” MGen and SPNEC president and CEO Emmanuel Rubio said.

Power China is a globally recognized leader in the field of planning, design and construction of energy infrastructure with a presence across Africa, Asia and Europe.

Under this recently signed deal, Power China will lead the construction of the eastern portion of the project, which accounts for 1,050 MWp of the total capacity of MTerra Solar.

This area includes Makabaklay town in Gapan, Pias town in General Tinio and Callos town in Peñaranda, all located in Nueva Ecija.

Power China will also oversee procurement, design, engineering, permitting, manufacturing, testing, logistics and on-site delivery of materials related to the project execution.

The agreement also covers warranty, defect resolution and the implementation of operational and maintenance protocols to ensure long-term reliability and success of the solar facility.

“MTerra Solar serves as our bold step toward ensuring a sustainable energy future for the Philippines. With Power China as our partner, we are well on our way to achieving our vision,” TSPI president and executive director Dennis Jordan said.

This latest partnership followed the signing of an EPC contract with China Energy Engineering Group Co. Ltd. to construct the western portion of the MTerra Solar project.

These collaborations with two Chinese firms are aligned with the Meralco Group’s commitment to deliver the project “efficiently, safely and on time.”

MTerra Solar recently broke ground at its Gapan site, which was attended by Pangilinan and Rubio as well as key government officials, including President Marcos, Sen. Loren Legarda and Interior and Local Government Secretary Jonvic Remulla.

By combining solar energy and an advanced battery system, the project is expected to provide clean and sustainable power to around 2.4 million households upon its full completion in 2027.