Pangasinan solar project secures financing

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Manila Electric Co. (Meralco) subsidiary MGen Renewable Energy Inc. (MGreen), along with its foreign partner Vena Energy, has secured financing for the 550-megawatt (MW) Bugallon solar power project in Pangasinan.

Without specifying the full amount, MGreen said in a statement yesterday the project is financed partly through an P18.3-billion ($325 million) Green Loan facility with Security Bank Corp., Rizal Commercial Banking Corp. and Philippine National Bank which served as lenders and hedging banks.

The parties said the project is expected to be completed by the fourth quarter of 2025.

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Once completed, the project will generate approximately 958-gigawatt hours of clean energy annually, enough to power more than 810,000 households while avoiding over 640,000 tons of greenhouse gas emissions.

Construction has begun, the parties said. The project provides around 7,000 employment opportunities during construction, prioritizing the workforce from local communities in Bugallon and surrounding areas.

“The financial close of the Bugallon solar power project represents a significant milestone in advancing renewable power generation in the Philippines… This facility will be instrumental in driving our growth in the Philippines as we continue to deliver innovative green solutions to our customers and accelerate the energy transition across the Asia Pacific region,” said Simone Grasso, Vena Energy chief investment officer.

Apart from the Pangasinan solar project, MGreen and Vena Energy also partnered for the 68 MW Garcia 2 solar project in Ilocos Norte through a 50:50 equal stake in Nuevo Solar Energy Corp.

MGreen is the renewable energy (RE) arm of Meralco Power Gen Corp. which, in turn, is the power generation subsidiary of Meralco.

Vena Energy, headquartered in Singapore, operates in the Asia Pacific region. It owns, develops, constructs, operates, manages and commercializes an RE portfolio that includes solar, onshore wind, offshore wind, energy storage and hybrid RE projects.

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