Infrastructure investor Actis is investing in a renewables and energy storage project in the Philippines through a partnership with Manila Electric Company (Meralco) and its subsidiary, Solar Philippines New Energy Corporation (SPNEC).
Actis is investing an unspecified sum in the Terra Solar Project, in a deal that represents the largest foreign direct investment for a greenfield infrastructure project in the Philippines. SPNEC currently owns 100% of the project.
The Terra Solar Project, when fully commissioned, is expected to be the world’s largest integrated renewables and energy storage project.
The 3.5GW solar and 4.5GWh battery project is being developed on the Philippines’ main island of Luzon. The project, backed by a long-term power supply agreement with Meralco, will provide clean energy to approximately 2.4m households.
Lucy Heintz, partner, head of energy infrastructure at Actis, said: “The scale of the Terra Solar Project and its capacity to provide clean power is enormous. It’s the single biggest such project in the world, visible from space, and Actis’ investment in the project marks an exciting moment.
“As a new investor in the project, Actis will bring its decades’ worth of expertise investing in global scale energy generation. We’re in the business of building and operationalising world-class energy assets both to accelerate the energy transition and deliver value for our investors. This investment will do that, on a truly significant scale.”
Rahul Agrawal, the head of energy for Southeast Asia at Actis, said: “Southeast Asia represents some of the most dynamic economies globally and the region’s energy transition is picking up speed. The Philippines is showing real purpose on the energy transition and no project represents this more than the Terra Solar Project.
“It will co-locate solar PV with battery storage on a scale the region hasn’t seen before, backed by a sizeable PSA, to deliver a stable renewable power supply to the main grid of Luzon in the Philippines.”
Manuel V Pangilinan, chairman and CEO of Meralco, parent company of Meralco PowerGen (MGen), said: “Terra Solar is one of the most ambitious renewables projects the world has ever seen. We are looking forward to contributing to the government’s goal to have 35% of the country’s energy to come from renewable energy.”
Emmanuel V Rubio, president and CEO of MGen and SPNEC, said: “We are delighted to be partnering with Actis, a world-class investor of sustainable infrastructure, in this monumental project.
“We look forward to the combined expertise of Meralco Power Generation, SPNEC and Actis that will bring the Terra Solar project into reality.”
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