Global sustainable infrastructure firm Actis has announced the closing of the acquisition of a stake in Terra Solar Philippines, Inc. (MTerra Solar), with MGEN Renewable Energy, Inc. (MGreen), through its subsidiary SP New Energy Corporation (SPNEC).

Actis said in a statement on Monday that the signing of the subscription agreement marks the completion of the share subscription agreement between Terra Solar Philippines, Inc. and Actis which was signed on September 6, 2024, granting Actis the right to an equity stake in MTerra Solar, subject to certain conditions, for a total consideration of approximately $600 million.

MTerra Solar represents one of the largest mid merit renewable generation capacities in the Philippines, with 850MW contracted capacity over 20 years.

This investment is the largest foreign direct investment in a single project for greenfield infrastructure in the Philippines, a clear testament of MTerra Solar’s key positioning in the country’s renewable energy (RE) sector.

With the Philippines’ growing energy demand and strong RE potential, this project aims to significantly contribute to the country’s Renewable Portfolio Standards program.

“MTerra Solar is a marker of what’s possible in terms of scale and ambition with renewable energy in Southeast Asia,

“It represents the largest such project in this fast-growing region, and we’re delighted to be partnering with MGEN and MGreen to deliver this critical project and accelerate the Philippines’ energy transition,” said Rahul Agrawal, Partner, Head of Energy for Southeast Asia at Actis.

Lucy Heintz, Partner, Head of Energy Infrastructure at Actis, commented that Actis specializes in building and operationalizing energy assets both to accelerate the energy transition as the firm seeks to deliver value for its investors.

“We are resolute in achieving these goals, and this project is expected to do just that and provides an excellent illustration of how we look to deliver a clean energy future at scale,” she added.

Emmanuel V. Rubio, President and Chief Executive Officer of MGEN and SPNEC, said this landmark investment marks a major step forward in the firm’s mission to accelerate the clean energy transition in the Philippines.

“With MTerra Solar, we are reinforcing our commitment to delivering reliable, sustainable, and cost-effective energy solutions,

“This collaboration with Actis and MGEN strengthens our ability to meet the country’s growing energy demand while advancing a greener and more resilient energy future,” he added.

MGreen is the renewable energy arm of Meralco PowerGen Corporation (MGEN), which is a wholly owned subsidiary of Manila Electric Company (Meralco).

This strategic investment will support MGEN’s mission to accelerate the clean energy transition in the Philippines.

Actis, with deep project execution and contract management expertise, will work together with MGEN and MGreen, to jointly develop and expand MTerra Solar, which will have 3,500MWp of installed PV capacity and 4,500MWh of installed BESS capacity once fully commissioned.

Significant development progress has been made with MTerra Solar.

Groundbreaking was led by President Ferdinand R. Marcos Jr. in November 2024, and Phase 1 Notice-to-Proceed has already been issued to contractors.

Continued progress has been made on all fronts towards achieving the scheduled COD by the first quarter of 2026: (i) Phase 1 land has been fully secured; (ii) EPC contracts have been awarded to leading engineering and construction companies; (iii) construction of transmission line is on track for completion towards end of 2025; and (iv) PHP 150 billion ($2.62 billion) of committed project financing has been signed with a syndicate of the largest Philippine banks.

MTerra Solar forms a significant part of Meralco’s commitment to support the government’s goal to have 35 percent of the Philippines’ energy being sourced from renewable energy by 2030.

MTerra Solar is also part of several pipeline projects of MGEN to have more than 1,500 MW of attributable RE capacity by 2030.

With this partnership, Actis joins the Meralco group in a shared goal to drive the growth of renewable energy and enhance the energy security of the Philippines.

The investment is also expected to play a key role in the country’s long-term decarbonization efforts, supporting the Philippines’ transition to a more sustainable and resilient energy system.

“Started as an ambitious project, MTerra Solar is moving towards the direction of providing meaningful contribution to the government’s goal to have about 35 percent of the country’s energy to come from renewable energy,

“Our collaboration with Actis is a pathway to the Philippine’s goal of having clean energy for the Filipino people,” Meralco Chairman and Chief Executive Officer Manuel. V. Pangilinan said.

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