UK’s Actis to invest US$600 million in Solar project in Philippines

The Philippines’ Meralco Powergen Corporation (MGen) and its subsidiary Solar Philippines New Energy Corporation (SPNEC) have announced UK-based investment firm Actis as its partner for the 3.5-GW Terra Solar project located about 100 km from Manila, Philippines.

Under a strategic partnership, SPNEC will issue Terra Solar shares equivalent to a 40% equity stake for a total consideration of US$600 million to Actis. The proceeds will be used to jointly develop and expand the project. Terra Solar has a 3.5 GW-peak solar photovoltaic capacity with 4.5 gigawatt-hours of battery energy storage system. It is backed by a 20-year, 850 MW power supply agreement with Meralco. The project is expected to be completed by 2027 to provide electricity to approximately 2.4 million households. It is also seen to cut carbon emissions by 3.6 million tonnes per year by displacing coal.