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Singapore-based Vena Energy has agreed to sell a combined 49-percent equity interest in its 500-megawatt-peak (MWp) Ixus Bugallon Solar Power Project in Pangasinan to Norwegian state investment fund Norfund and Impact Fund Denmark, bringing additional international capital into the Philippines’ renewable energy sector.
The transaction, which remains subject to approval by the Philippine Competition Commission and other customary closing conditions, will allow Vena Energy to retain operational involvement in the project while freeing up capital for new renewable energy developments across the region. Financial terms of the deal were not disclosed.
The investment comes as Vena Energy pursues a broader expansion in the Philippines, where rising electricity demand and the government’s push to increase renewable energy generation are driving the need for new power infrastructure.
Solar Capacity For Over 650,000 Households
Located in Bugallon, Pangasinan, the Ixus Bugallon project will be built beside Vena Energy’s existing 550-MWp Bugallon Solar Power Project. Once completed, the two facilities will form a solar development cluster with a combined capacity of 1,050 MWp, or just over 1 gigawatt-peak.
The new project was awarded under the Department of Energy’s second Green Energy Auction Program. It is expected to generate enough electricity to supply approximately 650,000 Philippine households annually while avoiding about 570,000 metric tons of carbon dioxide emissions each year.
The project reached financial close in July 2026 after securing approximately $310 million in senior debt financing from a syndicate of eight international banks.
Vena Group chief executive Nitin Apte said the project demonstrates how development expertise and long-term institutional capital can be combined to deliver renewable energy infrastructure at scale.
“The Philippines is an important market for Vena Energy,” Apte said, adding that the company expects the partnership to support the country’s energy transition and sustainable economic development.
Simone Grasso, Vena Group chief investment officer and global head of Vena Nexus, said the transaction would allow the company to retain long-term ownership and operational involvement while redirecting capital toward its construction programs and future growth.
Norwegian Expertise
Norfund, owned and funded by the Norwegian government, invests in businesses in developing countries to strengthen the private sector and help reduce poverty. Its Climate Investment Fund focuses on investments that can prevent or reduce emissions in emerging markets.
Norfund chief executive Erik Sandersen said the Bugallon project aligns with the fund’s mandate, citing its expected annual avoidance of more than half a million metric tons of carbon dioxide emissions.
Impact Fund Denmark, the country’s development finance institution, provides risk capital to businesses across Africa, Asia, Latin America and Ukraine to support green and inclusive development.
Its chief executive, Lars Bo Bertram, said the Philippines’ growing economy and rising electricity demand would require substantial investment in renewable energy, particularly because coal remains a major source of the country’s power supply.
The partnership reflects the role of development finance institutions in mobilizing capital for clean energy projects in Southeast Asia, where governments are seeking to reduce dependence on fossil fuels while accommodating economic growth.
Wider Philippine Expansion
The Bugallon investment is part of Vena Energy’s wider renewable energy development pipeline in the Philippines.
According to the Department of Trade and Industry (DTI), the company plans to expand its renewable energy footprint by another 2.6 gigawatts-peak (GWp), backed by potential investments of up to ₱245 billion.
The trade department said Vena Energy currently operates about 0.9 GWp of renewable energy capacity in the country, including solar facilities in Ilocos Norte and Negros Occidental. Another 1.3 GWp is under construction, while a further 1.3 GWp is under contract.
President Ferdinand Marcos Jr. earlier announced that Vena Energy planned to develop an additional 1.29 GW of capacity, supported by a P52-billion equity infusion over the next two years. The company presented its investment plans to Marcos during his visit to Singapore on Oct. 11, according to the DTI.
Trade Secretary Ma. Cristina Roque said the planned expansion would help meet the electricity requirements of industries and strengthen the country’s clean energy supply. Finance Secretary Frederick Go said the projects could also support efforts to improve energy security and lower electricity costs.
The discussions with Marcos also covered Vena Energy’s renewable energy and battery storage pipeline, faster project development, and measures to streamline grid integration.
Renewable Energy Targets Drive Investment Needs
The Philippines continues to rely heavily on coal and oil for electricity generation, while renewable sources such as solar, wind, and geothermal account for about a quarter of the country’s power supply.
The government aims to raise renewable energy’s share of the energy mix to 50 percent by 2040.
Meeting these ambitions will require sustained investment in generation capacity, transmission infrastructure, and energy storage to accommodate intermittent renewable sources and growing demand.
The Ixus Bugallon transaction, once completed, would add international institutional investors to a major solar development while enabling Vena Energy to recycle capital into its expanding project portfolio.
Source:
https://bilyonaryo.com/european-funds-take-49-stake-in-venas-pangasinan-solar-project/
https://business.inquirer.net/616526/vena-energy-eyes-p245-b-expansion-in-ph