"BDO Unibank pushes for solar energy megaprojects to allocate advantages to Filipino homes during funding of the globe's largest solar facility"

The Meralco Terra (MTerra) Solar project, a groundbreaking initiative in the Philippines, is set to provide clean energy to approximately 2.4 million households, spanning across 3,500 hectares in Nueva Ecija and Bulacan. This project, one of the world's largest integrated solar and battery storage facilities, is poised to make a significant impact on the country's power sector.

The MTerra Solar project will undergo two phases, delivering a total of 850 MWac of renewable energy. To ensure its success, over 600 scholars have received specialized training for the project. These scholars, upon completion of their training, will be employed by contractors for the project, fostering local employment opportunities.

BDO Unibank, the largest bank in the Philippines by total assets, has taken the lead as the project's financier. The corrected financing deal for the MTerra Solar project is worth US$2.64 billion, not US$264 million as previously stated. The German development bank KfW has also joined as a financier for this monumental project.

The MTerra Solar project will integrate solar generation with battery energy storage, ensuring a continuous power supply beyond daylight hours. A transmission line will be built to connect the plant to the national grid, facilitating the distribution of clean energy across the country.

The first phase of the project is expected to commence commercial operations in the first quarter of 2026, with the entire project becoming fully operational by 2027. This timely completion will help meet the Philippines' rising power demand and support the Department of Energy's renewable energy targets of 35% by 2030 and 50% by 2040.

The MTerra Solar project aligns with various sustainable development goals, including SDG 7 (Energy) and SDG 11 (Cities). It also supports the country's commitment to reducing carbon emissions, with the project expected to reduce emissions by about 4.3 million tonnes annually.

To further promote sustainability, BDO has recently issued a US$2 billion sustainability bond as part of its Sustainable Finance Framework. The bank has also received a US$100 million investment for the country's first blue bond, aimed at funding projects on water conservation, wastewater treatment, plastic recycling, sustainable tourism, fisheries, and sustainable seafood processing.

Three temporary community marketplaces have been established within the project's site to support local vendors and foster economic activity. These marketplaces aim to serve up to 7,500 workers, providing a platform for local businesses to thrive alongside the project's development.

As of now, the project has reached 35% overall progress, marking a significant step towards a cleaner and more sustainable future for the Philippines. The MTerra Solar project, spearheaded by Meralco PowerGen Corp (MGEN), is a testament to the country's commitment to renewable energy and sustainable development.