In a historic move for the Philippines’ renewable energy landscape, MGEN Renewable Energy, Inc. (MGreen), a subsidiary of Meralco PowerGen Corporation (MGEN), has partnered with Actis, securing a USD 600 million investment for Terra Solar Philippines, Inc. (MTerra Solar). Last September, the two signed a Share Subscription Agreement, giving Actis a 40% ownership share in MTerra Solar. This deal, the largest foreign direct investment in a single greenfield infrastructure project in the Philippines, positions the country as a renewable energy frontrunner in Southeast Asia. With a planned 3,500 MWp solar capacity and 4,500 MWh of battery storage, MTerra Solar will be the region’s biggest renewable project.
While the scale of the investment is monumental, the fresh angle lies in how this partnership positions the Philippines as a rising star in Southeast Asia’s renewable energy race. MTerra Solar, once fully commissioned, will boast an installed photovoltaic (PV) capacity of 3,500 MWp and a battery energy storage system (BESS) capacity of 4,500 MWh—making it the region’s largest renewable energy project of its kind. This ambitious endeavor not only elevates the Philippines’ clean energy profile but also sets a precedent for large-scale, mid-merit renewable projects that can stabilize power supply amid growing demand.
The project’s significance was underscored by Rahul Agrawal, Partner and Head of Energy for Southeast Asia at Actis, who stated, “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.”
MGEN President and CEO Emmanuel V. Rubio echoed this optimism, emphasizing the collaboration’s broader impact. “This landmark investment marks a major step forward in our mission to accelerate the clean energy transition in the Philippines,” Rubio said. “With MTerra Solar, we are reinforcing our commitment to delivering reliable, sustainable, and cost-effective energy solutions.”
Progress on MTerra Solar is already underway. Following a groundbreaking ceremony led by President Ferdinand R. Marcos Jr. in November 2024, Phase 1 has secured its land, awarded engineering, procurement, and construction (EPC) contracts to top firms, and issued a Notice-to-Proceed to contractors. The project’s transmission line construction is on track for completion by the end of 2025, supported by a PHP 150 billion financing commitment from a syndicate of the Philippines’ largest banks. With a scheduled commercial operation date (COD) set for Q1 2026, MTerra Solar is poised to deliver 850 MW of contracted capacity over 20 years.
The investment aligns with Meralco’s pledge to help the government achieve its target of sourcing 35% of the nation’s energy from renewables by 2030. MGEN, through MTerra Solar and other pipeline projects, aims to contribute over 1,500 MW of attributable renewable energy capacity by the decade’s end. Meralco Chairman and CEO Manuel V. Pangilinan highlighted the project’s transformative potential, saying, “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% of the country’s energy to come from renewable energy.”
For Actis, this partnership taps into its global expertise in energy transition infrastructure, reinforcing its commitment to sustainable growth. The collaboration also promises economic benefits, including job creation and enhanced energy security, as the Philippines works toward decarbonization and resilience.
With MTerra Solar setting a new benchmark for renewable energy in Southeast Asia, what challenges and opportunities do you think the Philippines faces in balancing rapid clean energy expansion with affordability and grid reliability?
There are no comments
Add yours