The Philippines’ Meralco Powergen Corporation (MGen) and its subsidiary Solar Philippines New Energy Corporation (SPNEC) has announced UK-based investment firm Actis as its partner for the 3.5-gigawatt Terra Solar project, which is set to be the world's largest solar power plant.

Under a strategic partnership, SPNEC said it will issue Terra Solar shares equivalent to a 40% equity stake for a total consideration of $600m to Actis. The proceeds will be used to jointly develop and expand the project.

“The Philippines is showing real purpose on the energy transition and no project represents this more than the Terra Solar Project,” said Rahul Agrawal, head of energy for Southeast Asia at Actis. “MGen and its management team’s vision for this project is truly exceptional and we are excited about the partnership with MGen to together build this landmark project.”

Terra Solar is located about 100 kilometres from Manila and has 3.5 gigawatt-peak of solar photovoltaic capacity with 4.5 gigawatt-hours of battery energy storage system. It is backed by a 20-year, 850 megawatt power supply agreement with Meralco.

The project is expected to be completed by 2027 to provide electricity to approximately 2.4 million households. It is also seen to cut carbon emissions by 3.6 million tonnes per year by displacing coal.