The milestone clears the way for the project's development and reinforces investor confidence in the Philippines' renewable energy sector.
Awarded under the Department of Energy's second Green Energy Auction Program (GEAP 2), the solar facility supports the country's target of expanding clean energy capacity and strengthening energy security.
Major expansion
The Ixus Bugallon Solar Power Project will be built beside Vena Energy's existing 550-MWp Bugallon Solar Power Project in Pangasinan.
Once completed, the new facility will bring the company's total solar capacity in the province to about 1 gigawatt-peak (GWp), creating one of the country's largest solar power development clusters, the company said in a statement.
Vena Energy said the project reflects its continued commitment to investing in the Philippines' renewable energy transition while expanding reliable sources of clean electricity.
Environmental impact
Once operational, the project is expected to generate enough renewable electricity to supply the equivalent annual power needs of around 650,000 Philippine households.
The company estimates the solar facility will also avoid more than 570,000 metric tons of carbon dioxide emissions each year, equivalent to removing about 125,000 vehicles from the road or planting 9.5 million trees.
In addition, the project is projected to save about 830 million liters of water annually compared with conventional power generation.
Bank support
Vena Group chief investment officer and Vena Nexus global head Simone Grasso said the financial close demonstrates the confidence of international lenders in the company's ability to develop and deliver large-scale renewable energy projects.
"As the Philippines advances its clean energy transition, we remain committed to mobilising long-term capital for projects that strengthen energy security and deliver lasting value to communities and stakeholders," Grasso said in the statement.
The financing package was provided by BNP Paribas, Crédit Agricole Corporate and Investment Bank, DBS Bank Ltd., ING Bank N.V., Intesa Sanpaolo S.p.A., MUFG Bank Ltd., Standard Chartered Bank, and Sumitomo Mitsui Banking Corp.
Vena Energy said the financing highlights continued international investor interest in Philippine renewable energy projects and demonstrates the bankability of utility-scale clean energy developments in the country. —Ed: Corrie S. Narisma
