Filipino households should reap benefits from large-scale clean energy ventures, urges BDO Unibank, in relation to its financing of the world's largest solar facility.
In a significant leap towards a greener future, BDO Unibank, the largest bank in the Philippines by total assets, is set to be the lead financier for the world's largest integrated solar and battery storage facility, the Meralco Terra (MTerra) Solar project.
The ambitious project, located across 3,500 hectares in Nueva Ecija and Bulacan, is expected to help meet the Philippines' rising power demand by providing clean energy to approximately 2.4 million households. The MTerra Solar project is a testament to BDO's commitment to sustainable financing, having invested US$100 million in the country's first blue bond, dedicated to projects on water conservation, wastewater treatment, plastic recycling, sustainable tourism, fisheries, and sustainable seafood processing.
Other lenders to the MTerra Solar project include Security Bank Corp, China Banking Corp, Philippine National Bank, Metropolitan Bank & Trust Co, and Bank of the Philippine Islands. Global investment firm Actis is also a significant investor, having committed $600 million for a 40-percent stake in Meralco Terra Solar, and Meralco PowerGen Corp (MGen) through its investment in SP New Energy Corp.
The project, which supports the Department of Energy's renewable energy targets, aims to reach 35% by 2030 and 50% by 2040, will undergo a two-phase construction, delivering a total of 850 MWac of renewable energy. The first phase is set to commence commercial operations in the first quarter of 2026, delivering 600 MWac of alternating current.
The MTerra Solar project is not just about clean energy. It's about creating opportunities. The project is expected to generate up to 10,000 jobs during the construction period, with qualified scholars being absorbed by contractors, providing immediate employment opportunities and a technological skills upgrade for the people of Nueva Ecija.
To ensure a smooth transition for communities and workers who might be impacted during the green energy transition, BDO prioritises their well-being. Three temporary community marketplaces have been established within the project's site, serving as hubs for local vendors and fostering economic activity and entrepreneurship.
The MTerra Solar project's integration of solar generation with battery energy storage ensures continuous power supply, a crucial aspect in maintaining a stable energy grid. This innovative approach is expected to reduce carbon emissions by about 4.3 million tonnes annually, a significant step towards the Philippines' commitment to combating climate change.
BDO's sustainable financing of projects across various sectors has crossed 1 trillion pesos (US$17.6 billion) since 2010, a testament to the bank's dedication to a greener future. The MTerra Solar project is just one of many initiatives that highlight BDO's role as a pioneer in sustainable financing in the Philippines.
