World’s Largest: P150B Raised for Luzon Solar Farm
By: Lisbet K. Esmael
Philippine Daily Inquirer / 12:10 PM March 01, 2025
MANILA, Philippines — SP New Energy Corp. (SPNEC) has successfully secured a P150-billion loan agreement with six local banks to support the construction of its 3,500-megawatt (MW) solar plant in Luzon, which is set to be potentially the largest of its kind globally.
In a disclosure to the local stock exchange on Friday, SPNEC announced that its subsidiary, Terra Solar Philippines Inc. (Terra Solar), has entered into a 15-year omnibus loan and security agreement with the following banks: BDO Unibank Inc., Bank of the Philippine Islands, Philippine National Bank, Security Bank Corp., China Banking Corp., and Metropolitan Bank & Trust Co. The company stated that the funds obtained will be used to finance its integrated solar photovoltaic facility and battery energy storage system (BESS). An additional P50 billion will be sourced from internal funds.
SPNEC serves as the main vehicle for Meralco PowerGen Corp. in the development of the expansive Terra Solar project located in Nueva Ecija and Bulacan.
The project includes a 4,500-MW BESS, capable of providing energy to more than 2 million households, as noted by Manny Rubio, the president and CEO of MGen. The initial phase, targeting a capacity of 2,500 MW, is anticipated to be completed by next year, while the second phase, with a capacity of 1,000 MW, is expected to come online by 2027.
Late last year, the company signed multiple contracts to accelerate this development. Two Chinese firms—Power Construction Corporation of China Ltd. and Energy China—were selected to lead the engineering, procurement, and construction efforts. Additionally, Chinese tech giant Huawei secured a contract to provide the BESS, marking it as its largest BESS project to date.
Renewable energy developers are increasingly integrating BESS into their facilities due to the intermittent nature of clean energy sources in electricity generation. BESS allows these developers to store energy during peak hours and deploy it when the grid requires additional capacity.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/p150-billion-secured-for-construction-of-worlds-largest-solar-farm-in-luzon/
