Philippines: TotalEnergies and Nextnorth Reach Financial Close on 440 MW Solar Project
TotalEnergies, a global multi-energy company, has taken a significant step forward in expanding its renewable energy footprint in Southeast Asia by reaching financial close and commencing construction of a major solar power project in the Philippines. Developed in partnership with Nextnorth, a locally based renewable energy company, the project represents one of the largest solar investments in the country to date and underscores the Philippines’ growing attractiveness as a destination for clean energy infrastructure.
The solar project, with a planned installed capacity of 440 megawatt-peak (MWp), is located in the City of Ilagan in the Province of Isabela, a region in northern Philippines that offers favorable solar irradiation conditions and available land resources suitable for large-scale renewable developments. The project is structured as a joint venture, with TotalEnergies holding a 65% controlling stake and Nextnorth owning the remaining 35%. This partnership reflects a blend of international expertise and local market knowledge, enabling efficient project execution and long-term operational success.
Construction activities are now underway following the successful completion of financing arrangements, and the solar facility is expected to become fully operational by the end of 2027. Once completed, the plant will play a crucial role in strengthening the Philippines’ renewable energy capacity and reducing its reliance on fossil fuel imports. The project aligns closely with the country’s energy transition objectives, particularly its ambition to significantly increase the share of renewables in the national energy mix over the coming decades.
Over its projected 20-year operational lifespan, the solar power plant is expected to generate approximately 13.5 terawatt-hours (TWh) of clean electricity. This level of production will contribute meaningfully to reducing greenhouse gas emissions and supporting the decarbonization of key sectors within the Philippine economy. Importantly, more than half of the electricity generated by the project will be sold under long-term offtake agreements, ensuring stable revenue streams and financial sustainability.
Two Retail Electricity Suppliers—AdventEnergy and PrimeRES—have entered into long-term contracts to purchase over 50% of the plant’s output. These agreements will primarily serve commercial and industrial customers seeking to reduce their carbon footprint and transition toward cleaner energy sources. The involvement of these suppliers highlights the increasing demand among businesses in the Philippines for renewable energy solutions as part of broader sustainability strategies.
The remaining electricity generated by the solar facility will be supplied to the national grid. This portion of the output has secured its market through participation in Round 4 of the Philippines government’s Green Energy Auction Program, a policy mechanism designed to accelerate renewable energy deployment by providing developers with guaranteed offtake arrangements. The program has been instrumental in driving investment in clean energy projects across the country, offering both transparency and long-term price stability.
From a financial perspective, the project represents a substantial investment of approximately $300 million. The financing has been secured through a consortium of three major international banks: Sumitomo Mitsui Banking Corporation (SMBC), ING Bank (ING), and Standard Chartered (SCB). The participation of these globally recognized financial institutions underscores the strong confidence in the project’s viability and the broader Philippine renewable energy market.
Notably, this financing package is considered the largest international funding arrangement for a solar project in the Philippines to date. It sets a new benchmark for renewable energy investments in the country and signals increasing international interest in supporting the region’s energy transition. The successful financial close also reflects the maturity of the Philippine regulatory framework and its ability to attract large-scale infrastructure investments.
Speaking on the milestone, Olivier Jouny, Senior Vice President of Renewables at TotalEnergies, emphasized the strategic importance of the project. He noted that the company is pleased to collaborate with Nextnorth on delivering a major solar installation that contributes to the Philippines’ renewable energy ambitions. Jouny also highlighted that the 440 MW project will form part of TotalEnergies’ broader renewable portfolio in Asia, which includes a combined 9 gigawatts (GW) of capacity being developed through a joint venture with Masdar. This regional strategy spans nine Asian countries and reflects TotalEnergies’ commitment to scaling up its clean energy presence in fast-growing markets.
From Nextnorth’s perspective, the project addresses critical challenges facing the Philippine energy sector. Miguel Mapa, President and CEO of Nextnorth, underscored the growing importance of energy security in the country. With electricity demand continuing to rise and the nation remaining exposed to volatile imported fuel markets, there is a pressing need to develop domestic, reliable, and scalable energy sources. Renewable energy projects such as this solar facility provide a viable solution by offering stable, long-term power generation without the risks associated with fossil fuel price fluctuations.
Mapa also highlighted the broader socio-economic benefits of the project. In addition to delivering clean electricity, the development is expected to create employment opportunities during both the construction and operational phases. Local communities in Isabela Province stand to benefit from increased economic activity, infrastructure improvements, and enhanced access to sustainable energy. These outcomes align with national development goals and reinforce the role of renewable energy as a driver of inclusive growth.
The project also illustrates the increasing role of public-private partnerships in advancing the energy transition. By combining private sector investment, international financing, and supportive government policies such as the Green Energy Auction Program, the Philippines is creating an enabling environment for large-scale renewable projects. This collaborative approach is essential for meeting the country’s climate commitments and ensuring a reliable, affordable energy supply for future generations.
As construction progresses, the TotalEnergies-Nextnorth solar project is poised to become a flagship example of renewable energy development in Southeast Asia. Its scale, financing structure, and market integration demonstrate how complex energy projects can be successfully executed through strategic partnerships and innovative frameworks. Once operational, the facility will not only contribute to reducing carbon emissions but also enhance the resilience and sustainability of the Philippine energy system.
In the broader context, this project reflects a global trend toward accelerating renewable energy deployment in emerging markets. Countries like the Philippines, with abundant natural resources and growing energy needs, are increasingly turning to solar and other renewables as cost-effective and environmentally sustainable solutions. Investments of this magnitude signal a shift in the global energy landscape, where clean energy is becoming central to economic development and energy security.
Ultimately, the 440 MW solar project represents more than just an infrastructure development—it is a milestone in the Philippines’ journey toward a low-carbon future. Through collaboration, innovation, and sustained investment, initiatives like this are helping to reshape the energy sector and pave the way for a more sustainable and resilient world.
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