The majority of the solar PV power plant’s energy will be sold through a 10-year power purchase agreement (PPA) to a subsidiary of Aboitiz Power Corporation, with the remainder to the Wholesale Electricity Spot Market.

Construction on the project is set to begin in October 2024, with NRE hoping to achieve commercial operations by Q4 2025.

The project, which involves an investment of over US$100 million, is being funded by equity from NRE and limited recourse credit facilities from Security Bank Corporation and Philippine National Bank.

Surender Singh, chairman of Nexif Ratch Energy, highlighted that the financial close of the solar PV power plant comes hot off the heels of its 74MW Calabanga solar project starting commercial operations.

 “The successful financial close of our 145MWp Bacolod Solar Farm highlights the exceptional collaboration with our partners and the dedication of our local development team. This financial close, in quick succession to start of commercial operations of Calabanga Solar project and rapid progress that more than 900MW of the wind projects, showcase our commitment to Philippine renewable energy,” Singh said.

In mid-August 2024, NRE confirmed that the 74MW Calabanga solar project in Camarines Sur, South Luzon, started commercial operations. The solar PV power plant, which NRE said was the first utility-scale solar power project in the Bicol Region, will deliver clean energy to the national grid, maintained by the state-owned National Grid Corporation of the Philippines.

NRE will sell about 85% of the generated electricity through a power supply agreement with a subsidiary of the AboitizPower Corporation. The remaining generated power will be supplied to the wholesale electricity spot market or commercial and contestable customers via direct short-term contracts.