0 Comments
Table of Contents
The Bases Conversion and Development Authority (BCDA) has signed a landmark agreement with Acwa Power Philippines to develop a utility-scale solar and battery energy storage facility in New Clark City, a project expected to strengthen the country’s renewable energy capacity while supporting the growth of energy-intensive industries in Central Luzon.
The project, which will occupy a 500-hectare site within the master-planned development, is designed to generate up to 500 megawatts (MW) of clean energy upon full build-out. The integrated photovoltaic (PV) and battery energy storage system (BESS) is expected to provide reliable, round-the-clock power for data centers, advanced manufacturing facilities, and other industries with high electricity requirements.
BCDA President and Chief Executive Officer Joshua Bingcang and Acwa Power Philippines President Salman Baray formally signed the lease agreement, marking what both parties described as a major step toward positioning New Clark City as a sustainable economic and technology hub.
Supporting New Clark City’s Growth
According to BCDA, the project represents an initial investment of at least $400,000 per MW, with final capacity and expansion phases subject to detailed engineering design, regulatory approvals, and future development plans.
The energy facility is expected to play a key role in supporting BCDA’s vision for New Clark City, which is being promoted as a center for emerging industries such as artificial intelligence, advanced manufacturing, digital infrastructure, and other technology-driven sectors.
“Aligning Acwa’s track record with BCDA’s development mandate will accelerate the country’s renewable targets and attract the high-value tenants that depend on clean, dependable power,” Bingcang said.
“Anchoring Acwa inside New Clark City is a defining moment for the estate. It tells global investors that this is where the Philippines’ next wave of sustainable infrastructure gets built,” he added.
Boosting Renewable Energy Targets
The project comes as the Philippines seeks to increase the share of renewable energy in its power generation mix to 35 percent by 2030, up from about 25 percent at the end of 2025.
Government officials have emphasized the need to accelerate renewable energy development amid concerns over energy security and exposure to fluctuations in global fuel prices.
Expanding domestic renewable energy capacity has become a priority as geopolitical tensions and disruptions in international energy markets continue to affect oil and fuel costs.
Finance Secretary Frederick Go, who witnessed the signing, described the investment as one of the significant commitments secured by the government under the administration of President Ferdinand R. Marcos Jr.
“Acwa Power’s decision to invest is a strong vote of confidence in the country and the reforms being pursued under this administration,” Go said.
“This will help unlock new investments, create quality jobs for Filipinos, and foster more resilient growth for Central Luzon and the Philippines for years to come,” he added.
The project also aligns with the administration’s broader efforts to expand the country’s renewable energy portfolio while creating conditions that attract long-term foreign investments.
Acwa Power Expands Philippine Presence
For Acwa Power, the agreement represents a milestone in its expansion strategy in Southeast Asia.
The lease marks the company’s first land agreement with a Philippine government agency and establishes its presence in one of the country’s flagship development areas.
Acwa Power Philippines is a subsidiary of Saudi Arabia-based Acwa Power Company, which is known globally for its large-scale renewable energy projects, water desalination operations, and green hydrogen initiatives.
Acwa Power Chief Executive Officer Dr. Samir Serhan said the partnership reflects growing confidence among international investors in the Philippines.
“New Clark City reflects the kind of integrated, future-ready development that global energy investors are looking for,” Serhan said.
“Working alongside BCDA gives this initiative both strategic clarity and long-term momentum. We see an opportunity to help power industrial growth while lowering energy costs and supporting the country’s broader economic ambitions through reliable renewable energy,” he added.
Baray said the size of the leased property was intentionally chosen to allow for the development of a fully integrated renewable energy ecosystem rather than a smaller, incremental project. “The footprint allows us to build something genuinely integrated rather than incremental,” he said.
He added that Acwa Power also intends to invest in host communities surrounding the project site to ensure that local residents benefit from the development.
Renewable Energy Push
The Acwa Power project is part of a wider effort by BCDA to incorporate renewable energy and smart infrastructure solutions across its properties.
Recently, the agency signed separate memoranda of understanding with Japanese firms Sustech Inc., Marubeni Corp., Index Strategy Inc., and Yachiyo Engineering Co. Ltd. to explore renewable energy, smart-grid technologies, energy storage systems, and transport infrastructure projects.
Under those agreements, BCDA and Sustech will examine opportunities for renewable energy generation, demand forecasting, and grid-scale battery storage. Marubeni, meanwhile, will assess potential infrastructure and low-carbon energy investments, including power generation projects within New Clark City.
The partnerships also support the development of the Luzon Economic Corridor, a strategic initiative aimed at enhancing connectivity and economic activity among key growth centers such as Clark, Subic Bay, Metro Manila, and Batangas.
These initiatives are key in BCDA’s strategy of transforming New Clark City into a future-ready urban center powered by clean energy, modern infrastructure, and advanced technologies capable of supporting the next wave of industrial and economic growth in the country.
Source:
https://bworldonline.com/economy/2026/06/01/753667/japan-firms-tapped-for-clark-re-smart-grid-works/