Prime Infrastructure Holdings Inc., the infrastructure unit of billionaire Enrique Razon Jr., plans to put up the world’s largest solar power project with a capacity of 2,500 megawatts to 3,500 MW.
The company will combine the solar plant with 4,000 megawatt-hours to 4,500 MWh of battery energy storage system to boost the supply of renewable energy in the country.
“Prime Infra finds a sweet spot to pursue solar as we take advantage of the steep decline in installation costs over the past decade and the improved battery energy storage system technology that allows us to build an economically critical and socially relevant infrastructure at a scale the world has never seen before,” said Prime Infra president and chief executive Guillaume Lucci.
Terra Solar Philippines, a unit of Terra Renewables Holdings Inc., a renewable power subsidiary under Prime Infra’s control, will develop the project in partnership with Solar Philippines Power Project Holdings Inc.
Terra Solar will supply 850 MW to Manila Electric Co. (Meralco).
Terra Solar submitted a bid to Meralco as an original proponent last year. Following the Department of Energy’s approval, Meralco went through the competitive selection process.
Two entities challenged the bid but failed to submit an offer, paving the way for Terra Solar to negotiate a 20-year power supply agreement with Meralco.
The company said it would make 600 MW of solar capacity available to Meralco by 2026, while the additional 250 MW would be delivered by 2027.
“We, at Prime Infra, are delighted to move forward with Meralco on this record-breaking project that highlights solar power’s important contribution to strengthening the country’s energy security—solar, which is normally looked at for peaking, is now being made available by Terra Solar to answer Meralco’s mid-merit requirement, thereby addressing both the need for additional capacity and compliance with RPS,” Lucci said.
He commended the DOE and Meralco for approving a project, “that is not only transformational for the renewable energy landscape, but also for managing to do so at a competitive price.”
Terra Solar’s projection shows that the 850-MW supply could displace an annual consumption of about 1.4 million tons of coal or 930,000 liters of oil.
This means a reduction in both greenhouse gas emissions and import dependency for the country from 2026 to 2046, it said.
Prime Infra focuses on building infrastructure assets that support the most urgent sustainability priorities—clean and renewable energy, access to clean water, waste management and viable critical infrastructure.