The Meralco Terra solar project spans 3,500 hectares of land across the provinces of Nueva Ecija and Bulacan, north of Manila, Xinhua reported.

Once operational, the project is expected to generate over 5 billion kilowatt-hours of electricity annually, providing a substantial contribution to the Luzon grid, addressing the growing demand for clean and sustainable energy, and reducing dependence on fossil fuels, the energy department said.

"This major investment in solar and energy storage technology is a crucial step toward achieving our goal of increasing the share of renewables in the energy mix, reducing our carbon footprint, and addressing electricity demand in the main Luzon Island," Energy Secretary Raphael Lotilla said, quoted by Xinhua news agency.

The project will enhance the country's energy security and resilience, and will contribute to economic development by creating jobs and promoting sustainable growth, Lotilla said.