The investment firm Actis has signed a strategic partnership with Manila Electric Company (Meralco), and its subsidiary, Solar Philippines New Energy Corporation (SPNEC), to invest US$600 million in the 3.5 GW Terra Solar project, which is expected to become the world’s largest integrated renewable energy and storage project.
Actis will bring its rich experience in contracting, constructing, and operating infrastructure assets to the project. The project is located about 100 km from Manila. It plans to pair 3.5GWp solar PV capacity with 4.5GWh battery energy storage system (BESS). The project covers an area of around 3500 hectares and has signed a 20-year, 850MW (for 12-hours daily on average) power supply agreement (PSA) with Meralco, the largest power distribution company in the Philippines. It will provide electricity to about 2.4 million homes and reduce approximately 3.6 million tons of carbon emissions annually by replacing coal.
Solar Philippines New Energy Corporation currently owns 100% of the project, and it wasn’t revealed how large a stake Actis plans to take or what the value of that investment will be.
The Philippines has a mature energy sector, with private companies operating in the fields of power generation, transmission, and distribution. It also sets a goal to increase renewable energy generation to 35% of the country’s total electricity generation by 2030.
To support this, about 5GW of solar and wind power purchase agreements (PPAs) have been granted in recent years, and two more auctions of 12GW projects are expected next year.
