TERRA SOLAR Philippines, Inc. (TSPI), a subsidiary of SP New Energy Corp. (SPNEC), has tapped China Energy Engineering Group Co. Ltd. (Energy China) to develop a portion of its solar project in Central Luzon.

TSPI awarded the engineering, procurement, and construction (EPC) contract to Energy China, which operates in 140 countries, the company said in a statement on Tuesday.

“Our partnership with Energy China guarantees a seamless, turnkey delivery of key components for the Terra Solar project,” TSPI said.

SPNEC’s TSPI is constructing a P200-billion project consisting of a 3,500-megawatt-peak (MWp) solar power plant and a 4,500-megawatt-hour (MWh) battery energy storage system, aimed at providing power to two million households.

SPNEC is now controlled by the Pangilinan group through MGen Renewable Energy, Inc., the renewable energy development arm of Meralco Power Gen Corp. (MGen). The latter is a unit of Manila Electric Co. (Meralco).

“Choosing Energy China as our EPC partner was not a mere whim; we made sure that we selected a company with an exceptional track record in delivering complex, large-scale renewable energy projects around the world,” TSPI President and Executive Director Dennis B. Jordan said.

Energy China and its affiliates will oversee all aspects, including procurement, design, engineering, permitting, manufacturing, testing, logistics, and on-site delivery, ensuring the project is executed “efficiently and comprehensively,” TSPI said.

Under the agreement, Energy China will also provide warranty coverage, promptly address any defects, and implement robust operational and maintenance protocols to ensure the project’s long-term reliability and success.

Moreover, the company will develop specialized training programs for local teams and collaborate closely with stakeholders to facilitate the smooth integration of the project into the national grid, including the incorporation of the battery energy storage system.

“This partnership is more than just a business deal — it is a catalyst for progress and development. Through this collaboration for Terra Solar, we aim to accelerate the nation’s energy transition journey and contribute to a cleaner, more sustainable future,” MGen President and Chief Executive Officer (CEO) Emmanuel V. Rubio said.

Meralco Chairman and CEO Manuel V. Pangilinan said that the agreement “goes beyond what it is but a commitment by Meralco and MGen to change the energy landscape.”

“By combining variable renewable energy from solar with advanced battery storage, Terra Solar will provide 850 MW of mid-merit, clean, and reliable energy, making it competitive with conventional power plants,” TSPI said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera