TotalEnergies and its partner Nextnorth, a Philippines-based renewable energy developer, have reached financial close and started construction of a 440 MWp solar power plant in Ilagan city, Isabela province. The project is expected to be operational by the end of 2027 and produce 13.5 TWh over 20 years.

With a total cost of approximately US$300 million, the project is owned by TotalEnergies (65%) and Nextnorth (35%) and financed by three international banks – Sumitomo Mitsui Banking Corporation (SMBC), ING Bank NV (ING) and Standard Chartered (SCB). It is considered the largest international financing for a solar project in the Philippines to date.

According to Olivier Jouny, SVP renewables at TotalEnergies, this 440 MW project will contribute to the 9 GW renewables portfolio that the company is combining with Masdar through a 50/50 joint venture across nine Asian countries.

“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 towards a more energy independent future,” said Miguel Mapa, president and CEO of Nextnorth.

TotalEnergies and Nextnorth said more than 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 users seeking to decarbonise their operations. The remaining production will be sold to the national grid via its award under Round 4 of the Philippine government’s Green Energy Auction Program.

Image courtesy of TotalEnergies