Philippine power retailer Manila Electric Co. said its unit, MGen Renewable Energy, will invest 15.9 billion pesos ($280 million) to buy shares in SP New Energy Corp. as the latter funds its solar energy projects.

MGen will subscribe to 15.7 billion common shares and 19.4 billion redeemable preferred voting shares in SPNEC, the companies said in a joint statement on Thursday. Earlier in the day, SPNEC approved an increase in its authorized capital stock to 75 billion common shares and 25 billion preferred shares from 50 billion common shares to enable the investment by MGen.

SPNEC plans to develop 3,500 megawatts of solar panels and 4,000 megawatt-hours of battery energy storage systems in the main Luzon island. Manila Electric Chairman and CEO Manuel Pangilinan said it “will be one of the largest solar projects not just in Asia, but in the world.”

Philippine conglomerate Metro Pacific Investments Corp., which Pangilinan also heads and is a unit of Hong Kong’s First Pacific Co., in March agreed to pay 2 billion pesos to buy 1.6 billion shares in SPNEC from its parent Solar Philippines Power Project Holdings Inc.

The Southeast Asian nation aims to increase the share of renewables in its energy mix to 35% by 2030 and 50% by 2040, from around 30% currently.

Author: Manolo Serapio Jr. and Cecilia Yap