Actis has concluded a $600 million investment in MTerra Solar through a partnership with MGreen, the renewables unit of Meralco PowerGen Corp. (MGEN), and its SPNEC subsidiary.

The companies claimed the deal marks the largest foreign direct investment in a single greenfield infrastructure project in the Philippines and strengthens MTerra Solar’s position as one of the country’s leading renewable energy developers. The project will supply 850 MW under a 20-year contract and contribute to the Philippines’ Renewable Portfolio Standards program.

“MTerra Solar is a marker of what’s possible in terms of scale and ambition with renewable energy in Southeast Asia,” said Rahul Agrawal, partner and head of energy for Southeast Asia at Actis. “It represents the largest such project in this fast-growing region.”

Actis, a global investor in sustainable infrastructure, will work alongside MGEN and MGreen to develop MTerra Solar, which will have 3.5 GWp of installed PV capacity and 4.5 GWh of battery energy storage system capacity once fully commissioned.

The project has advanced since breaking ground in November 2024 under Philippine President Ferdinand R. Marcos Jr. The first phase has secured land, awarded engineering and construction contracts, and remains on track for operations in early 2026. The transmission line is set for completion by late 2025, with PHP 150 billion ($2.6 billion) in financing secured from major banks in the Philippines.

MTerra Solar said it is playing a key role in Meralco’s broader clean energy strategy and the Philippine government’s target of sourcing 35% of the country’s energy from renewables by 2030. Meralco Chairman and CEO Manuel V. Pangilinan said the project is advancing toward its goal of making a “meaningful contribution” to the country’s renewable energy ambitions.

UBS AG Singapore Branch served as financial advisor to SPNEC, with Latham & Watkins and Picazo Law as international and domestic legal counsel. Morgan Stanley advised Actis, with Milbank and SyCip Law providing legal counsel.

Last week, the Philippines outlined terms for its fourth renewable energy auction (GEA-4), requiring solar projects to include battery energy storage systems (BESS) with at least four hours of capacity. The auction, delayed from late 2024, aims to add 9,378 MW of new capacity, including 1,100 MW of solar paired with storage, to enhance grid reliability.

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