In a significant move for the Philippine energy sector, Manila Electric Co (Meralco) has announced the sale of a 40% stake in its solar power subsidiary to global investment firm Actis for $600 million. This transaction, revealed on September 6, 2024, marks a major step towards expanding renewable energy capacity in the Southeast Asian nation.
Meralco, founded in 1903 and serving over 7 million customers, is leveraging this investment to fuel the development and expansion of the Terra Solar energy storage project. This initiative stands out as one of the world's largest integrated renewables and energy storage projects, with an estimated cost of $3.5 billion.
The Terra Solar project is set to become a cornerstone of the Philippines' renewable energy landscape, boasting:
- 3,500 megawatts of photovoltaic capacity
- 4,500 megawatt hours of battery energy storage
This ambitious undertaking aligns with the Philippines' goal to increase its renewable energy share to 35% by 2030, capitalizing on the country's abundant solar energy potential due to its geographical location.
Actis, a global player in sustainable infrastructure founded in 2004, brings significant expertise to the partnership. The firm has committed to investing $9 billion in its energy portfolio, which spans more than 200 projects across 35 countries. This collaboration is expected to accelerate the Philippines' transition towards cleaner energy sources and contribute to the nation's target of 15.3 GW of renewable energy capacity by 2030.
The integration of large-scale battery storage with solar power in the Terra Solar project reflects a growing trend in the renewable energy sector. These energy storage systems are crucial for stabilizing the power grid and reducing reliance on fossil fuels, addressing the intermittent nature of solar energy generation.
As the fastest-growing renewable energy source globally, solar power offers the potential to significantly reduce electricity costs in the long term. The Philippine Department of Energy has been actively promoting such initiatives to decrease the country's dependence on imported fossil fuels.
This strategic partnership between Meralco and Actis not only represents a substantial investment in the Philippines' sustainable future but also showcases the increasing attractiveness of renewable energy projects to global investors. As the Terra Solar project progresses, it is poised to become one of the largest solar initiatives in Southeast Asia, potentially transforming the region's energy landscape.