December 12, 2024 | 12:00am
MANILA, Philippines — SP New Energy Corp. (SPNEC), chaired by tycoon Manuel V. Pangilinan, is seeking regulatory approval to build a transmission system that will connect the $4-billion MTerra Solar project into the national grid.
SPNEC, through Terra Solar Philippines Inc. (TSPI), has filed an application to the Energy Regulatory Commission (ERC) to develop and operate dedicated point-to-point limited transmission facilities.
The connection will be done through bus-in arrangements along the Nagsaag-San Jose 500 kiloVolt (kV) transmission line of the National Grid Corp. of the Philippines (NGCP).
Following a thorough review of all available options, TSPI has determined that this arrangement is the “most cost-effective and technically viable option” for the immediate interconnection of the solar facility.
“Connecting (MTerra Solar) to the Luzon grid via bus-in connection along the Nagsaag-San Jose 500 kV transmission line is an essential requisite to the plant’s commercial operations scheduled in the first quarter of 2026,” it said.
Once completed, the operation, service and maintenance of the transmission facilities is proposed to be undertaken by NGCP, consistent with the decision of the ERC on similar applications.
Certified as an energy project of national significance, MTerra Solar consists of a 3,500-megawatt peak solar power plant paired with a 4,500-MW-hour battery energy storage system in Nueva Ecija and Bulacan.
Upon full completion in 2027, the project is poised to become the largest integrated solar facility in the world, providing clean and sustainable power to around 2.4 million households in Luzon.
The Pangilinan-led Meralco Group took over the project last year after acquiring a controlling stake in SPNEC through MGen Renewable Energy Inc., a subsidiary of Meralco PowerGen Corp.
As previously disclosed, the Meralco Group has earmarked over P14 billion for the grid integration of the MTerra Solar project.
TSPI earlier signed a contract with Meralco Industrial Engineering Services Corp. (MIESCOR) for the construction of a critical infrastructure that will ensure the delivery of energy to the grid once the solar project becomes operational.
The infrastructure includes a main collector substation, two solar photovoltaic satellite collector substations and two double-circuit 230-kV transmission lines.
The total contract price for the MIESCOR deal was said to be P7.8 billion, while about P6.55 billion was allocated for offshore equipment.
MTerra Solar, which broke ground at its Gapan site in Nueva Ecija last month, is expected to provide a major boost to the country’s energy transition journey.
“At the ERC, we are dedicated to actively supporting projects that would propel our journey toward energy transition,” said ERC chairperson and CEO Monalisa Dimalanta, who joined the project’s groundbreaking ceremony.
“Given our wealth of natural resources, it is both an opportunity and a responsibility for us to lead in the development of sustainable energy so we can address the challenges of power affordability and reliability in the country,” she said.
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