France’s TotalEnergies and Nextnorth, a Philippines-based renewable energy developer, have closed a financing deal and started the construction of a 440 MWp solar power plant in northeastern Luzon.
Located in the city of Ilagan in the province of Isabela, the project, 65% owned by TotalEnergies, and 35% by Nextnorth, will be operational by the end of 2027, according to a media release. Once operational, it will produce 13.5 TWh of energy over two decades.
The aim is for over 50% of the project’s electricity to be sold under long-term offtake agreements with retail electricity suppliers AdventEnergy and PrimeRES, in order to supply commercial and industrial users seeking to decarbonize their operations. 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 (GEAP) led by the Department of Energy.
With a total cost of approximately $300 million, the project is financed by Sumitomo Mitsui Banking Corporation (SMBC), ING Bank (ING) and Standard Chartered (SCB); gobal law firm Norton Rose Fulbright advised the banks on the deal.
It is the largest international financing for a solar project in the Philippines to date.
Olivier Jouny, senior vice president renewables at TotalEnergies, said in a media release: "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.”
Paris-based Journy added: “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.”
TotalEnergies JV with UAE's Masdar will be headquartered in Abu Dhabi Global Market (ADGM),and will be staffed by around 200 employees from both TotalEnergies and Masdar; it is subject to regulatory approval.
Commenting on the Luzon solar plant, Miguel Mapa, president and chief executive officer, Nextnorth, added: “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."
Manila-based Mapa continued: "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."
