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Renewable energy

BDO Unibank Leads Financing for World's Largest Solar and Battery Storage Project in the Philippines

Strategic Insights

— 1 min read

Manila, the Philippines is stepping up its efforts to meet its growing power demand with the construction of the world's largest integrated solar and battery storage project, MTerra Solar. BDO Unibank Inc. has taken the lead in financing the P150-billion project, committing the largest share among a six-bank syndicate. The project, spearheaded by Meralco PowerGen Corp. (MGEN), is expected to supply clean energy to 2.4 million households once completed. The massive renewable energy initiative aims to reduce the country's carbon emissions by around 4.3 million tons per year, equivalent to removing at least three million gasoline-powered cars from the road.

Key Takeaways:

  • BDO Unibank Inc. is the largest lender to the P150-billion project finance facility for MTerra Solar, giving the largest commitment among a six-bank syndicate.
  • The project aims to supply clean energy to 2.4 million households once completed.
  • MTerra Solar will integrate solar generation with battery energy storage to ensure continuous power supply even beyond daylight hours.
  • The project aims to reduce the country's carbon emissions by around 4.3 million tons per year.
  • Phase 1 of MTerra Solar is set to begin commercial operations by the first quarter of 2026, delivering 600 megawatts of mid-merit renewable energy under its supply deal with Meralco.
  • Phase 2 will add another 250 MW to the project's capacity.
  • The project has already reached 35 percent completion, with construction of substations and solar panel structures underway.
  • BDO Unibank is also supporting the project's host communities through initiatives such as solar-powered streetlights, skills training for over 600 scholars, and support for small businesses.

Statistics:

  • P150,000,000,000: the total project financing facility for MTerra Solar.
  • 2,400,000: the number of households that will be supplied with clean energy once the project is completed.
  • 4,300,000: the estimated tons of carbon emissions reduced by the project per year.
  • 3,000,000: the equivalent number of gasoline-powered cars removed from the road through the project's carbon emissions reduction.
  • 600 MW: the capacity of the project's Phase 1 operations.
  • 250 MW: the capacity of the project's Phase 2 operations.
  • 35%: the project's completion rate as of this month.

Sources:

  • Meralco PowerGen Corp. press release
  • BDO Unibank Inc. press release

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