TotalEnergies and Philippine renewable energy developer Nextnorth have reached financial close and begun construction of a 440-megawatt solar project in northern Philippines, marking one of the largest internationally financed renewable energy deals in the country to date.
The $300 million project, located in Ilagan City in Isabela province, will be owned 65% by TotalEnergies and 35% by Nextnorth. The facility is scheduled to be operational by the end of 2027, according to a joint statement.
Once completed, the solar plant is expected to generate around 13.5 terawatt-hours (TWh) of electricity over a 20-year period, contributing to the Philippines’ efforts to scale up renewable energy capacity and reduce dependence on imported fossil fuels.
More than half of the plant’s output has already been contracted under long-term offtake agreements with retail electricity suppliers AdventEnergy and PrimeRES, which will supply power to commercial and industrial users aiming to decarbonise their operations.
The remaining generation will be sold to the national grid under an award from the government’s Green Energy Auction Programme (GEAP), a key policy tool to accelerate renewable deployment.
The project is backed by a consortium of international lenders comprising Sumitomo Mitsui Banking Corporation, ING Bank, and Standard Chartered.
The companies said the deal represents the largest international project financing for a solar development in the Philippines so far, highlighting growing foreign investor appetite for the country’s clean energy sector.
The investment comes as the Philippines ramps up efforts to expand renewable energy’s share in its power generation mix, amid rising electricity demand and ongoing exposure to volatile imported fuel prices.
Large-scale, utility-grade solar projects are seen as critical to improving energy security while supporting climate targets.
For TotalEnergies, the project forms part of its broader strategy to build out a diversified low-carbon electricity portfolio across Asia.
The French energy major is combining its renewable pipeline with Masdar through a 50:50 joint venture spanning nine countries, as it targets more than 100 TWh of net electricity production globally by 2030.
Nextnorth, a relatively new entrant founded in 2022, is building a pipeline of more than 800 MW of renewable energy projects across the Philippines.
The company focuses on developing bankable, utility-scale assets aimed at supporting long-term energy transition and economic growth.
The Ilagan solar project is expected to deliver both environmental and economic benefits, including job creation during construction and operations, while providing stable, clean power supply to businesses.
The deal also reflects a broader trend of increasing participation by international banks and investors in Southeast Asia’s renewable energy sector, as governments roll out policy support and auction mechanisms to crowd in private capital.
Business News Asia
