London-based investor Actis has agreed to invest in the Terra Solar Project in the Philippines. The planned installation has been touted as the world’s largest solar-plus-storage array.The agreement was signed between Actis, Manila Electric Co. (Meralco) and its subsidiary, Solar Philippines New Energy Corp. (SPNEC), which holds a majority stake in the project.
According to local reports, Actis has invested $600 million for a 40% stake in the project. Actis said this represents the largest foreign direct investment in a greenfield infrastructure project in the Philippines.
“The scale of the Terra Solar Project and its capacity to provide clean power is enormous. It’s the single biggest such project in the world, visible from space, and Actis’ investment in the project marks an exciting moment,” said Lucy Heintz, partner, head of energy infrastructure at Actis. “As a new investor in the project, Actis will bring its decades’ worth of expertise investing in global scale energy generation.”
The company has committed $9 billion to 185 projects across 35 countries through five energy funds. It said that these projects have created a generation capacity of 36 GW, with 20 GW coming from renewable sources.
The Terra Solar project consists of 3.5 GW of solar and 4.5 GWh of battery energy storage system (BESS). It is set to cover 3,500 hectares and supply electricity to approximately 2.4 million households upon completion. Actis is expected be SPNEC’s lone partner in the project.
A groundbreaking ceremony took place in January 2024. Development will take place over two phases, the first of which is scheduled to reach commercial operations by 2026.
SPNEC is expected to award contracts for the supply of solar modules and energy storage systems for the $4 billion project soon, having shortlisted submissions from several international companies.
In August, the Board of Investments of the Philippines issued a green lane certificate to the Terra Solar Project, in order to facilitate easier approval and processing of permits.
