Philippine M&A Deals Surge in 2025 on the Back of Renewable Energy Investments
- February 18, 2026
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In 2025, investors sharpened their focus on renewable energy (RE) assets and clean power infrastructure, reshaping the direction of merger and acquisition (M&A) activity in the Philippines. What once reflected a broad mix of sectors increasingly leaned toward energy and natural resources, with renewables taking center stage.
According to the Year-End M&A Report 2025 by Isla Lipana & Co./PwC Philippines, 74 M&A deals were announced in the country as of December 4, 2025, reaching a total value of $4.6 billion. A significant part of that investment was tied to energy transactions, particularly RE projects at 27.9%.
Despite an overall decline relative to 2024’s more expansive activity, clean energy deals emerged as pivotal to market momentum, signaling a broader strategic realignment in the Philippine investment landscape toward sustainable growth.
Top 3 RE M&A Deals in 2025
The energy and natural resources sector recorded 22 M&A deals in 2025, generating a combined deal value of $1.9 billion. Here are five of the most notable M&A and RE deals that shaped the Philippines’ 2025 investment landscape:
Prime Infrastructure Capital’s Acquisition of First Gen Assets
One of the largest transactions in the Philippine energy and natural resources sector for 2025 was the $897.5 million acquisition by Prime Infrastructure Capital, Inc. of select assets from energy firm First Gen Corporation.
Parties involved: Prime Infra, the Razon Group’s infrastructure arm, develops and operates key assets in sustainable energy, water, and waste management, including Manila Water, Prime Energy (Malampaya gas-to-power), and Prime Waste Solutions. First Gen, a Lopez Group power company, manages the Philippines’ largest RE portfolio, covering geothermal, hydro, wind, and solar, and through Energy Development Corporation, is also developing geothermal projects in Indonesia.
Date closed: November 17, 2025
Details: Prime Infrastructure Capital acquired a 60% stake in First Gen’s gas-fired power business. The transaction covers major generation assets in Batangas, including the operating Santa Rita, San Lorenzo, San Gabriel, and Avion power plants, which together provide more than 2,000 megawatts (MW) of capacity, as well as the proposed 1,200-MW Santa Maria plant. The deal also includes a majority 60% stake in an offshore liquefied natural gas (LNG) terminal, strengthening Prime Infra’s position in critical energy infrastructure.
Significance: Prime Infra President and CEO Guillaume Lucci said the acquired gas assets complement its subsidiary Prime Energy. Together with its consortium partners, Prime Energy is pursuing Phase 4 drilling in the Malampaya project to maximize domestic gas output. Lucci noted, “With this transaction, our Prime Infra assets are now fully connected across the energy value chain, from upstream to midstream to downstream.”
Meralco’s Investment in SP New Energy Corporation
Another high-profile deal was Manila Electric Company (Meralco) investing $127.6 million in SP New Energy Corporation (SPNEC).
Parties involved: The buyer was Meralco via MGreen, its dedicated RE subsidiary. The seller was primarily Solar Philippines Power Project Holdings, Inc., led by Leandro Leviste, which transferred additional SPNEC shares to Meralco’s RE unit. SPNEC is part of SP Group’s broader RE business.
Date closed: The share transaction was executed through block trades on the Philippine Stock Exchange on October 27, 2025.
Details: Meralco’s MGreen acquired 10.83 billion shares of SPNEC for ₱13.76 billion, increasing its stake to around 57.33% of SPNEC’s common shares. This followed earlier investments in the company, bringing Meralco’s total investment in SPNEC to over ₱34 billion, including funding for SPNEC’s large‑scale solar and storage projects such as the MTerra Solar project in Bulacan and Nueva Ecija.
Significance: The deal deepens Meralco’s exposure to RE by solidifying control over one of the Philippines’ largest solar developers. SPNEC is advancing the 3,500‑MW Terra Solar project paired with a 4,500‑MWh battery storage system, expected to be among the world’s largest integrated solar and storage facilities once operational.
(Also read: Leviste Solar Firm Faces Possible Penalties over Alleged Illegal Power Rates)
SembCorp’s Purchase of Puente Al Sol Solar Farm
Singapore-based SembCorp Industries Ltd. acquired a solar farm in Negros Occidental for $77.4 million.
Parties involved: The deal was executed between Sembcorp Energy Philippines Inc., a subsidiary of Singapore‑based Sembcorp Industries Ltd., and Puente Al Sol Inc., a solar project developer controlled by CleanCurrent Renewable Energy Inc.
Date closed: Sembcorp Industries Ltd. announced on January 31, 2025, that its wholly‑owned subsidiary, Sembcorp Energy Philippines Inc., signed a share purchase agreement with CleanCurrent Renewable Energy Inc. to acquire100 % of Puente Al Sol Inc.
Details: Puente Al Sol is developing a 96-MW solar farm in Cadiz, Negros Occidental. The acquisition gives Sembcorp a foothold in utility‑scale solar power in the Philippines.
Significance: This transaction marks a strategic entry for Sembcorp into the Philippine RE sector, demonstrating cross‑border capital infusion into the country’s clean energy infrastructure and signaling stronger foreign investor confidence in Philippine solar development.
Why RE M&A Deals Are Rising
Several interconnected factors explain why RE has become a cornerstone of M&A activity in 2025:
Policy support
Government policy has increasingly favored RE development, notably through the Philippine Energy Plan, which was updated to raise the country’s target to achieve a 35% share of renewables in the power generation mix by 2030.
Additionally, incentives such as duty-free importation of RE equipment have helped attract capital inflows. Under theRenewable Energy Act of 2008 (Republic Act No. 9513), RE developers certified by the Department of Energy (DOE) can import machinery, equipment, and materials used in RE facilities without tariff duties for the first ten years, reducing upfront capital costs and improving project economics.
Strong investment interest
According to the Department of Trade and Industry (DTI), 78% of projects endorsed under the Green Lane initiative are RE ventures. As of May 2025, the Board of Investments had granted Green Lane status to 208 projects, with RE accounting for roughly P5.2 trillion of the total value.
The Green Lane program was created to fast-track strategic investments aligned with national development goals. RE has emerged as its main focus, helping drive a 70.64% rise in approved investments under the current administration.
Strategic positioning in energy transition
High‑profile international partnerships, such as a $15 billion agreement with UAE‑based Masdar to develop up to 1 GW of solar, wind, and battery capacity by 2030, highlight the strategic value of entering the Philippine renewable sector early and at scale.
International investor Copenhagen Infrastructure Partners (CIP) of Denmark intends to invest up to $3 billion in the country’s first large offshore wind farm (about 1 GW) through a partnership with ACEN, the RE arm of the Ayala Group.
Meanwhile, A UK government press release describes UK‑backed collaborations for solar and wind farms in the Philippines, including a partnership involving Citicore Renewable Energy Corporation and a UK investment platform to develop multiple wind farms across Luzon and Visayas with an aggregate capacity of around 380 MW.
(Also read: Diplomatic Strains with China Seen as Threat to Philippine Solar Goals)
Challenges Remain in the Green Transition
While investor interest in Philippine RE surged in 2025, the sector also faced a notable regulatory reality check. The DOE took decisive action to terminate contracts that failed to meet performance milestones, ensuring that only viable, deliverable projects remained in the pipeline.
Among the most high-profile cases, Solar Philippines Power Project Holdings Inc. (Solar Philippines) saw over 11,400 MW of contracts cancelled due to non‑delivery of committed capacity, with associated penalties estimated at P24 billion. In total, from 2024 to 2025, the DOE relinquished 163 RE service contracts, representing nearly 18,000 MW across solar, wind, biomass, geothermal, and hydropower projects.
The term “flippers” has also entered the national conversation on RE to describe entities that secure service contracts without concrete plans to develop the projects themselves. Instead, they aim to sell or transfer the rights to more committed players at a profit. This practice ties up crucial capacity and slows progress toward the country’s energy goals.
DOE Secretary Sharon Garin explicitly criticized “fly-by-night (companies) or those that will just apply for a contract even if they do not yet have financing or even a clear project plan.” Her remarks may refer to firms like Solar Philippines, which secured RE contracts but failed to deliver.
In announcing the termination of dozens of contracts, Garin said the DOE wants “really legitimate investors that have the financial, technical and legal capacity to embark on a contract and an energy project in the Philippines,” adding that the agency is “cleaning it up” to prevent non‑performing players from holding valuable capacity without progress.
Enforcing compliance is critical both to expand clean energy and to protect consumers from higher costs and supply uncertainty.
Meanwhile, PwC Philippines reported that investor activity in the RE sector remained highly selective throughout 2025, with capital flowing toward transactions backed by strong fundamentals.
Deals have been taking longer to close as investors conduct more deliberate, strategic evaluations. Several transactions that began last year are now expected to reach completion in early 2026, reflecting a cautious yet focused approach to RE M&A.
Sources:
https://primeinfra.com/prime-infra-closes-p50-b-transaction-for-60-of-first-gens-gas-assets
https://dailyguardian.com.ph/mgreen-acquires-majority-stake-in-spnec-for-php-13-76b
https://manilastandard.net/business/314553427/singapore-firm-buying-96-mw-cadiz-solar-farm.html
https://megawide.com.ph/wp-content/uploads/2025/01/CHII-Company-Profile-Oct-2024_Q4.pdf
https://manilastandard.net/business/314689652/ph-registers-4-6b-in-ma-deals.html
https://lawphil.net/statutes/repacts/ra2008/ra_9513_2008.html
https://powerphilippines.com/dti-78-of-fast-tracked-investments-now-in-renewable-energy
https://pia.gov.ph/news/masdar-enters-philippine-renewable-energy-market
https://www.gov.uk/government/news/uk-is-developing-solar-energy-and-wind-farms-in-the-philippines
