- TotalEnergies and Nextnorth have started construction on a 440 MWp solar plant in Isabela, set to begin operations by end 2027.
- The $300 million project secured financing from SMBC, ING, and Standard Chartered, making it the largest international financing for a solar project in the Philippines to date.
- More than half of the power will go to commercial and industrial users through long-term offtake agreements, while the rest will support the national grid through the Green Energy Auction Program.
TotalEnergies and Nextnorth have moved a 440 MWp solar project from financial close into construction, placing one of the country’s largest renewable power developments on a clear path to delivery.
The project, owned 65% by TotalEnergies and 35% by Philippines-based developer Nextnorth, is expected to become operational by the end of 2027. Once online, it will generate an estimated 13.5 TWh of electricity over 20 years.
For the Philippines, the project lands at a critical point. Power demand continues to rise, while the country remains exposed to imported fuel costs and supply volatility. Large-scale solar offers domestic generation, lower carbon intensity, and a hedge against fuel market shocks.
Long-Term Buyers Add Bankability
More than 50% of the project’s electricity will be sold through long-term offtake agreements with AdventEnergy and PrimeRES. Both Retail Electricity Suppliers serve commercial and industrial customers seeking to cut emissions from their operations.
That offtake structure matters for investors. It gives the project a clear revenue base and links renewable generation directly to corporate decarbonization demand. It also reflects a broader shift in Asian power markets, where industrial buyers are becoming key drivers of clean energy procurement.
The remaining electricity will be sold to the national grid through the project’s award under Round 4 of the Philippines Government’s Green Energy Auction Program. That framework gives the project policy support and aligns it with national efforts to lift the share of renewables in the generation mix.
$300 Million Financing Sets Market Benchmark
The project carries a total cost of about $300 million. Financing comes from three international banks: Sumitomo Mitsui Banking Corporation, ING Bank NV, and Standard Chartered.
According to the companies, it is the largest international financing for a solar project in the Philippines to date. That gives the deal wider significance beyond its installed capacity. It provides a reference point for future utility-scale solar financing in the country.
For lenders, the structure combines several features that reduce risk: international sponsors, contracted offtake, government auction support, and a growing local market for renewable power. For the Philippines, it shows that large solar assets can attract cross-border capital when policy design and bankable revenue models align.
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TotalEnergies Links Project To Asian Renewables Growth
“We are delighted with our partner Nextnorth to start the construction of this major solar project in Philippines, thereby contributing to the country’s goal of increasing renewables in its generation energy mix. These 440 MW will contribute to the 9 GW renewables portfolio that we are combining with Masdar through a 50/50 joint venture across nine Asian countries”, said Olivier Jouny, SVP Renewables at TotalEnergies.
The project also fits into TotalEnergies’ broader strategy in Asia. The company is building renewable capacity across the region through partnerships, including its joint venture with Masdar. For large energy groups, markets such as the Philippines offer both growth and transition exposure, especially as governments seek to replace imported fossil fuel dependence with local clean power.
Energy Security Drives The Business Case
Nextnorth framed the development in energy security terms, not only climate terms.
“Energy security has never been more relevant for the Philippines than it is today. With rising demand and continued exposure to imported fuels, the country needs domestic, scalable, and bankable renewable capacity. Working alongside TotalEnergies, we are delivering clean, reliable power that supports communities, creates jobs, and advances the Philippines’ transition toward a more energy independent future,” said Miguel Mapa, President and CEO, Nextnorth.
That message will resonate across boardrooms and ministries. Renewable power is no longer only a sustainability line item. It is now tied to industrial competitiveness, electricity price stability, supply resilience, and national development.
For C-suite leaders and investors, the Isabela project offers a clear case study. Corporate offtake can help anchor large renewable assets. Government auction programs can widen grid supply. International lenders can scale capital when governance and revenue structures are credible.
For the Philippines, the project adds new domestic clean power at meaningful scale. For Asia’s energy transition, it shows how policy, corporate demand, and project finance are starting to converge around bankable renewables.
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