Key Takeaways:
TotalEnergies SE has started construction on a 440-megawatt solar power plant in the Philippines, a project valued at approximately $300 million that marks the largest international financing for a solar project in the country to date.
"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," Olivier Jouny, Senior Vice President for Renewables at TotalEnergies, said. He noted the project will contribute to the 9 GW renewables portfolio the company is developing with Masdar across nine Asian countries.
The project, located in the City of Ilagan, is owned by TotalEnergies (65%) and its local partner, renewable energy developer Nextnorth (35%). Financing is being provided by a consortium of international banks including Sumitomo Mitsui Banking Corporation, ING Bank NV, and Standard Chartered. Once operational by the end of 2027, the plant is expected to produce 13.5 terawatt-hours of electricity over 20 years.
"Energy security has never been more relevant for the Philippines than it is today," said Miguel Mapa, President and CEO of Nextnorth. "With rising demand and continued exposure to imported fuels, the country needs domestic, scalable, and bankable renewable capacity." More than 50% of the project's electricity will be sold under long-term agreements to retail electricity suppliers AdventEnergy and PrimeRES, which serve commercial and industrial users.
This project is a significant step in TotalEnergies' broader strategy to build a competitive portfolio of renewable and flexible assets. The French energy major aims to achieve over 100 TWh of net electricity production by 2030, a goal supported by its current gross renewable power generation capacity of almost 36 GW. For investors, the project demonstrates a tangible expansion of TotalEnergies' renewable assets, strengthening its position in the growing Asian clean energy market and providing a long-term, stable revenue stream backed by offtake agreements.
This article is for informational purposes only and does not constitute investment advice.
