French energy giant TotalEnergies and renewable energy developer Nextnorth announced they have closed financing and started construction on a 440 MW solar power project in the Philippines.
Financing for the project, with an estimated cost of approximately $300 million, was provided by three international banks, Sumitomo Mitsui Banking Corporation, ING Bank and Standard Chartered. The transaction is the largest international financing for a solar project in the Philippines to date, the companies said.
The launch of the new project follows an agreement announced last month between TotalEnergies and Abu Dhabi-based Masdar, with the companies merging their onshore renewable activities in nine countries across Asia – including the Philippines – in a new $2.2 billion 50/50 joint venture.
Olivier Jouny, SVP Renewables at TotalEnergies said:
“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.”
The new project, located in the city of Ilagan, Isabela province, is owned 65% by TotalEnergies and 35% by Nextnorth, and is expected to be operational by the end of 2027. The company said that the facility is projected to generate 13.5 TWh of electricity over 20 years.
According to the companies, over 50% of the project’s electricity will be sold under long-term offtake agreements with two Retail Electricity Suppliers, AdventEnergy and PrimeRES, supplying commercial and industrial customers seeking to reduce emissions. The remaining production will be sold to the national grid via its award under Round 4 of the Philippines Government’s Green Energy Auction Program.
Miguel Mapa, President and CEO, Nextnorth said:
“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.”
