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The company has partnered with San Ignacio Energy Resources, a subsidiary of Nextnorth Energy, for the project, which is estimated to cost $326mn. The power plant represents one of the largest PV parks in the country and will be built on ~1,000 acres of land in the province of Isabella, along the Northern Luzon high voltage transmission network of the Philippines’ National Grid. San Ignacio recently signed a solar energy operating contract for the asset, with the country’s department of energy. Construction of the power plant is expected to start in 2024 and be completed in 2025.
The move marks TotalEnergies’ second major renewables investment in the Philippines - the company is also developing a 60 MWac solar project in the Tarlac province. As per Enerdatics’ research, the partnership is one of the largest in the country’s solar space, and closely follows fellow European oil major Shell’s collaboration to develop more than 1 GW of projects by 2027. The venture will concentrate on utility-scale solar PV while also looking into onshore wind and energy storage systems. According to industry estimates, 1 GW of solar PV can power the annual daytime consumption of more than 1.2 million homes in the country. Another significant JV in the segment is Blueleaf Energy’s collaboration with SunAsia Energy, Inc. to build 1.3 GW of floating solar or floatovoltaic projects in the country, announced in Sep’22. The companies plan to invest $2bn in the partnership.
In recent years, the Philippines has become a more appealing market for renewable energy in South East Asia, owing primarily to prompt regulatory action to improve the country's energy matrix. The country's reliance on fossil fuels has strained its economy and power supply mix since the emergence of the COVID-19 pandemic, resulting in a dramatic increase in rolling blackouts and a drop in the country's annual GDP growth rate. In Jul’21, high-ranking administrative officials announced bipartisan support for legislation aimed at stimulating the domestic energy transition. The country's current goal is to increase the share of renewables in its power mix to 35% by 2030 and 50% by 2040, which would require the addition of 73.9 GW of renewable capacity over the next two decades.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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