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Good news from the Department of Energy (DOE): the country’s energy situation is expected to generally improve compared to last year, driven by new generation projects and vital transmission lines enhancing power delivery to the market.
Government data reveals that nearly 7,000 energy developments are set for the local sector this year, with a strong focus on clean energy. Of these, 5,754 projects will be in Luzon, including 3,923 renewable energy facilities, with solar leading the way at 3,060 installations.
One of these solar projects is a collaboration between MGreen, the renewable energy arm of Meralco PowerGen Corporation, and Vena Energy, a leading green solutions provider in the Asia-Pacific region.
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Project status update
The companies recently announced the successful completion of financing agreements for the 550-megawatt (MW) Bugallon Solar Power Project in Pangasinan. In their January 15 statement, the partners confirmed financial closure and revealed that construction is on track to be completed by the fourth quarter of this year. Vena Energy’s Chief Investment Officer, Simon Grasso, stated that this “represents a significant milestone in advancing renewable power generation in the Philippines.”
The solar project received a Green Lane Certification from the Board of Investments, ensuring faster processing and priority support for its development. It is anticipated to generate around 7,000 jobs, benefiting residents of Pangasinan and neighboring provinces.
When completed, the project will generate around 958 gigawatt hours of renewable energy each year, supplying power to over 810,000 homes in the Philippines. It will also help reduce greenhouse gas emissions by more than 640,000 tons annually, comparable to planting 11 million trees.
Collaboration: key to success
Vena Energy has built a varied portfolio that includes onshore wind, solar, and offshore wind (OSW) projects, with a total capacity of 39 gigawatts. The company also has a green infrastructure pipeline, which features 24 gigawatt-hours of battery energy storage systems (BESS) and 620 megawatts (DC) of data centers, alongside other sustainable initiatives. Still, strategic partnerships were crucial in the project’s success.
Dennis Jordan, president and CEO of MGreen, emphasized that reaching financial closure marks the start of a strong partnership between two like-minded organizations. He said, “We bring our collective strengths and visions into alignment, enabling us to take a definitive step toward a cleaner and sustainable energy future.”
Partial funding for the project, amounting to approximately P18.3 billion, has been secured through a green loan facility provided by Security Bank Corporation (SB), Rizal Commercial Banking Corporation (RCBC), and the Philippine National Bank (PNB). Vena Energy revealed that SB Capital Investment Corp., RCBC Capital Corp., and PNB Capital and Investment Corp. acted as the primary coordinators, with RCBC overseeing the coordination of the green loan.
Allan Ang, FSVP at PNB, shared the bank’s honor in partnering on one of the nation’s largest solar power plants, saying “We share with Vena Energy the vision for a cleaner and greener environment and PNB is taking important steps towards sustainability.”
Meanwhile, Yvonne Marcelo, Senior Vice President of Security Bank, expressed pride in supporting Vena Energy and MGreen, “aligned with our commitment to finance sustainable initiatives promoting economic growth and environmental stewardship.”
RCBC’s Corporate Banking Head, Elizabeth E. Coronel emphasized the bank’s leadership in financing renewable energy projects. “We are a proud partner of Vena Energy and MGreen in building one of the largest solar power projects in the Philippines,” she stated.
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Balancing transition and stability
As the Philippines moves toward energy transition, ensuring a stable power supply remains critical to meet rising demand and sustain economic growth. For 2025, Energy Secretary Raphael Lotilla has projected a 5.4% increase in power demand, reaching 14,769 megawatts (MW) in Luzon.
To facilitate a smooth transition, coal and gas remain essential components of the country’s energy mix. Last July, the DOE clarified that no outright ban exists on the development of new coal-fired power plants. Existing facilities with expansion plans are still permitted to move forward with their projects, maintaining a balanced approach to energy development.
Sources:
https://mb.com.ph/2025/1/15/p18-3-billion-secured-for-bugallon-solar-project-in-pangasinan
https://tribune.net.ph/2025/01/15/mgen-vena-energy-to-generate-7000-jobs-in-pangasinan-re-project