As part of the Department of Energy’s (DOE) ongoing monitoring of the timely completion of 200 power generation projects, Stage 1 of the Terra Solar Project is advancing key grid interconnection milestones with the National Grid Corporation of the Philippines (NGCP), following the energization and cut-in of the Terra Solar 500-kilovolt (kV) substation on 21 December 2025 along the Nagsaag San Jose 500 kV Line 2. Stage 1 represents 364 megawatts (MW) of the project’s planned 2,500 MW solar capacity with battery energy storage systems (BESS), operated by Terra Solar Philippines, Inc.
Commercial operation of Stage 1 is expected in the first quarter of 2026.
President Ferdinand R. Marcos Jr., in his 4th State of the Nation Address (SONA), directed the DOE to accelerate the construction of 200 power generation projects over the next three years to strengthen the country’s energy security. In line with this directive, the DOE continues to track project progress and coordinate closely with stakeholders to ensure that committed capacity is delivered on schedule and in a manner consistent with safety and grid reliability requirements.
As of November 2025, about 956 MW of new power generation capacity have been added to the Luzon, Visayas, and Mindanao grids, complemented by 160 MW of new energy storage capacity located in Luzon and Visayas. These additions form part of the DOE’s broader efforts to ensure sufficient and reliable power supply in support of the country’s growing economy and increasing electricity demand.
The 956 MW of new generation capacity comes from fourteen (14) power plants: twelve (12) facilities using renewable energy (RE) technologies, one (1) oil-based power plant, and one (1) natural gas-fired power plant, most of which entered commissioning in the second half of 2025. Collectively, these projects help strengthen the grid’s ability to meet peak demand, reduce the risk of supply shortfalls, and improve operational flexibility in managing baseload requirements and variable demand.
To help ensure that committed capacity is delivered as scheduled, the DOE is implementing active project monitoring across generation and energy storage developments. This includes close coordination with project proponents and NGCP on grid interconnection readiness, regular tracking of construction and commissioning milestones, and early identification of bottlenecks that may affect timelines, such as permitting constraints, right-of-way issues, equipment delivery risks, and site level implementation challenges. Through these efforts, the DOE aims to strengthen accountability, address issues before they escalate into delays, and ensure that new capacity additions can reliably support the grid when they are needed most.
As Terra Solar Stage 1 advances toward energization, the DOE will continue working closely with NGCP and the project proponent to ensure that grid interconnection requirements and safety standards are met, and that key commissioning milestones remain on track. The Department will likewise maintain close monitoring of other committed projects under the 200-power-plant pipeline, supporting the timely integration of new generation to strengthen system reliability and energy security.
