SP New Energy, a subsidiary of Manila Electric that includes tycoon Manuel Pangilinan-led Metro Pacific Investments and billionaire Lance Gokongwei’s JG Summit among its shareholders, has raised $600 million for integrated solar and energy storage projects.
The investment from Actis, a leading global investor in sustainable infrastructure, is equivalent to a 40% stake in SP New Energy’s wholly-owned Terra Solar project, Solar Philippines said Sunday on its Facebook page. Solar Philippines is the second largest shareholder in SP New Energy, which is controlled by Manila Electric’s Meralco PowerGen (MGen).
“The transaction represents the largest foreign direct investment for a greenfield infrastructure project in the Philippines,” the U.K.-based Actis said on its website Sept. 6, “and will see Actis bring its rich experience in contracting, building and operating infrastructure assets to the project.
Terra Solar is building a $3.5 billion solar farm with 3.5 gigawatts in peak capacity that will be combined with 4.5 gigawatt-hours of battery energy storage capability. The project, located 100 kilometers north of Manila, is set to be the world’s largest integrated renewables and energy storage project, according to Actis.
“Terra Solar is one of the most ambitious renewables projects the world has ever seen,” Manila Electric and SP New Energy Chairman Manuel Pangilinan said in the statement released by Actis.
The Terra Solar project, which covers 3,500 hectares, is backed by a 20-year, 850 megawatt power supply agreement with Manila Electric, the largest Philippine energy distribution utility. It will supply about 2.4 million households and prevent 3.6 million tons of carbon emissions annually by replacing coal, Actis said.
“The scale of the Terra Solar project and its capacity to provide clean power is enormous,” Lucy Heintz, partner and head of Energy Infrastructure at Actis, said in a statement. “It’s the single biggest such project in the world, visible from space.”
Actis has committed $9 billion to more than 185 projects across 30 platforms in 35 countries through its five energy funds, with 36 gigawatts in combined generating capacity of which 20 gigawatts are from renewable sources, the U.K. based company said in its statement.
Terra Solar expects its project to be key to the Philippines’ goal of sourcing 35% of its total power supply from renewables by 2030. The transition started with the signing of 5 gigawatts of solar and wind power purchase agreements in recent years, and an additional two rounds of auctions for 12 gigawatts worth of projects are expected to follow next year.
The partnership with Actis will bring the ambitious Terra Solar power project “into reality,” MGEN and SP New Energy CEO Emmanuel Rubio said in a statement.
Actis’ investment in Terra Solar comes after MGen gained majority control of SP New Energy with its acquisition of an additional 11.5% stake for 7.5 billion pesos, raising its holdings to 50.5% and increasing its total investment to 27.9 billion pesos.
Solar Philippines was founded by entrepreneur Leandro Leviste, a Forbes Asia 30 Under 30 alum from 2016.
Metro Pacific Investments—the biggest shareholder in Manila Electric—first invested in SP New Energy in May 2023. The conglomerate, which has interests in hospitals, agriculture, toll roads, real estate, water and utilities, has Indonesia billionaire Antoni Salim’s Hong Kong-based First Pacific among its shareholders. Pangilinan, also a key stakeholder in Metro Pacific, is chairman and CEO of Metro Pacific.
