Actis Invests in World’s Largest Integrated Renewable Energy and Storage Project in the Philippines

Actis, a global leader in sustainable infrastructure investment, has formed a strategic partnership with Manila Electric Company (Meralco) and its subsidiary, Solar Philippines New Energy Corporation, to invest in the Terra Solar Project. Set to become the world’s largest integrated renewables and energy storage project, this initiative represents the largest foreign direct investment for a greenfield infrastructure project in the Philippines.

The Terra Solar Project, strategically located on Luzon, the Philippines’ main island, approximately 100km from Manila, will combine 3.5GWp of solar photovoltaic (PV) capacity with a 4.5GWh battery energy storage system (BESS). Spanning approximately 3,500 hectares, equivalent to the size of about 83,300 basketball courts, the project is supported by a 20-year power supply agreement (PSA) with Meralco, the country’s largest distribution utility. This PSA will deliver 850MW of power for an average of 12 hours daily, providing electricity to roughly 2.4 million households and reducing carbon emissions by approximately 3.6 million tonnes annually by displacing coal.

Actis will leverage its extensive experience in contracting, building, and operating infrastructure assets to contribute to the project. The partnership with Solar Philippines New Energy Corporation, which currently owns 100% of the project, was formalized at a signing ceremony in Pasig City, Philippines. The event was attended by key figures, including Torbjorn Caesar, Chairman and Senior Partner at Actis; Manuel V. Pangilinan, Chairman of Meralco; and Emmanuel V. Rubio, CEO of Meralco PowerGen (MGen).

The Philippines, one of Southeast Asia’s largest economies, is experiencing rapid growth, with a GDP increase of approximately 6% forecasted from 2023 to 2027. The country has set an ambitious target to increase renewable energy generation to 35% of its total energy mix by 2030. The Terra Solar Project’s PSA is expected to play a crucial role in meeting this goal, supporting the country’s transition to renewable energy.

In recent years, around 5GW of solar and wind power purchase agreements (PPAs) have been awarded, with an additional 12GW expected to be auctioned over the next year. The Terra Solar Project is poised to be a key contributor to these efforts.

The project boasts strong sustainability credentials, contributing to the decarbonization of the Philippines’ energy system (SDG7), supporting economic development (SDG8), creating over 10,000 new jobs (SDG8), and facilitating local development (SDGs3+4).