United Kingdom-based investment firm Actis has completed its US$600 million deal with Mgen Renewable Energy In ( MGreen ), the renewable energy arm of Meralco PowerGen Corporation led by Philippine tycoon Manuel V. Pangilinan. 

The deal, announced earlier in September 2024 and completed through MGen’s subsidiary SP New Energy Corp ( SPNEC ), is the largest foreign direct investment in a single greenfield infrastructure project in the Philippines. With the deal, Actis has acquired a 40% stake in MTerra Solar, one of the world’s largest integrated renewables and energy storage projects. 

Described by Panglinan as a “mega deal” when it was first announced last year, the US$4 billion project envisions a 3,500-megawatt solar farm and a 4,500MW-hour energy storage system, both of which will be located in a massive tract of land approximately 100 kilometres from Manila. 

Rahul Agrawal, partner and head of energy for Southeast Asia at Actis, highlights the project's scale and ambition. “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,” he says. 

The deal was formalized following the completion of conditions outlined in a share subscription agreement between Actis and MTerra Solar.

Actis, a leading global investor in sustainable infrastructure, says the project will allow the company to bring clean energy to scale in the region. 

“Actis specializes in building and operationalizing energy assets both to accelerate the energy transition as we seek to deliver value for our investors," says Lucy Heintz, partner and head of energy infrastructure at Actis. "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.” 

Emmanuel Rubio, president and chief executive officer of MGen and SPNEC, also says the landmark investment of Actis is “a major step forward” in the quest for a just energy transition in the Philippines. “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 says. 

MTerra Solar plays a crucial role in Meralco’s commitment to supporting the government’s target of having a 35% renewable energy mix by 2030. The project is also part of MGen’s broader strategy to reach over 1,500MW of attributable renewable capacity by the same year.  

With the Actis deal completed, Meralco’s Pangilinan has set his sights on another massive solar project. Talking to local reporters earlier this week, he said a Terra Solar 2 project could be in the works, and it could be announced within the year.