A major loan has been secured for the construction of two solar power projects in the Philippines, marking a significant step forward in the country's transition to renewable energy. The P4.05-billion loan, provided by a local bank, will fund the development of two 41-megawatt-peak solar power projects, each paired with a 53-megawatt-hour battery energy storage system. This investment is expected to accelerate the country's green transition and expand access to reliable power. The projects will be located in Pampanga and Nueva Ecija.
The loan is seen as a commitment to financing transformative projects that create opportunities and promote a cleaner energy grid. The bank's president and chief executive officer emphasized the importance of ensuring rural communities benefit from a more secure energy grid. The partnership between the bank and the renewable energy company reflects a shared goal of advancing the country's renewable energy targets. The collaboration is also expected to play a critical role in advancing the Department of Energy's target of increasing renewable energy's share in the country's power generation mix.
The solar power projects will be developed by a local renewable energy company, which aims to expand its renewable energy capacity to about five gigawatts by 2028. The company has earmarked significant funds to support this target, with plans to rollout over 1 GW of solar power projects. The projects in Pampanga and Nueva Ecija will supply electricity to local electric cooperatives under a hybrid solar power project business model. This model is expected to reduce system losses, lower electricity costs for end-users, and help the utilities meet their renewable energy sourcing requirements.
The development of these solar power projects marks a significant milestone for the renewable energy company, which manages a portfolio spanning renewable energy generation, project development, and retail electricity supply. The company's entry into Pampanga and expansion in Nueva Ecija demonstrate its commitment to advancing the country's renewable energy targets. The projects will be directly connected to local distribution utilities, potentially reducing system losses and lowering electricity costs for end-users.
