French energy major TotalEnergies and Philippine renewable developer Nextnorth have officially reached financial close and commenced construction of a 440MWp utility-scale solar project in the Philippines, marking one of the country’s largest internationally financed solar developments to date. The project, located in Ilagan City in Isabela Province, carries an estimated investment value of approximately US$300 million and is scheduled for commissioning by the end of 2027.
The project is structured as a joint venture (JV) between TotalEnergies, which holds a 65% stake, and Nextnorth with the remaining 35%. Once operational, the solar facility is expected to generate approximately 13.5TWh over a 20-year operating period, helping expand domestic renewable generation capacity in a country still heavily reliant on imported fossil fuels.
Additionally, more than half of the plant’s electricity output has already been secured through long-term offtake agreements with Philippine retail electricity suppliers AdventEnergy and PrimeRES. The suppliers mainly serve commercial and industrial customers pursuing decarbonization targets. The remaining output will be supplied to the national grid under Round 4 of the Philippines’ Green Energy Auction Program.
TotalEnergies and Nextnorth 440 MW Solar Project in the Philippines
This project is significant beyond its installed capacity. It represents the largest international project financing package secured for a solar development in the Philippines so far. It is also a reflection of the growing lender confidence in Southeast Asia’s renewable market despite macroeconomic and currency volatility. The financing package was arranged through three international lenders: Sumitomo Mitsui Banking Corporation, ING Bank, and Standard Chartered.
The project also strengthens TotalEnergies’ Asia renewables expansion strategy. The company recently combined a 9GW renewables pipeline with Masdar via a 50/50 joint venture spanning nine Asian markets, with the Philippines project forming part of that pipeline. Papua LNG, based on the Elk-Antelope gas fields and moving toward final investment decision (FID), is another of TotalEnergies’ flagship energy projects in the Asia-Pacific region.
For the Philippines, the development directly supports national targets to increase renewable penetration. This is while improving energy security amid rising electricity demand, grid constraints, and continued fuel import dependency.
Fact Sheet for TotalEnergies and Nextnorth 440 MW Solar Project in the Philippines
Project name: 440MWp Ilagan Solar Project
Location: Ilagan City, Isabela Province
Technology: Utility-scale solar PV
Capacity: 440MWp
Investment value: US$300 million
Developers: TotalEnergies, Nextnorth
Expected COD: End-2027
Generation forecast: 13.5TWh over 20 years
Offtake: Corporate PPAs and national grid sales
Financiers: SMBC, ING, Standard Chartered
Project Timeline
Project awarded under GEAP Round 4: Previously secured
Financial close achieved: April 2026
Construction start: April 2026
Major EPC mobilization: 2026
Peak construction phase: 2026-2027
Grid integration works: 2027
Commercial operations date (COD): End-2027
TotalEnergies and Nextnorth 440 MW Solar Project in the Philippines: Project Cost
Project value: US$300 million
Ownership structure:
- TotalEnergies – 65%
- Nextnorth – 35%
Debt financiers:
- Sumitomo Mitsui Banking Corporation (SMBC)
- ING Bank NV
- Standard Chartered Bank
Revenue structure:
- 50% under long-term PPAs with AdventEnergy and PrimeRES
- Balance sold into national grid under Green Energy Auction Program Round 4
This financing structure substantially de-risks merchant exposure while ensuring a stable revenue base during the project’s early operating years.
Project Team
Developers
- Lead international developer: TotalEnergies
- Local development partner: Nextnorth
Financing institutions
- SMBC
- ING Bank
- Standard Chartered
Offtakers / Retail Electricity Suppliers
Government framework
- Philippines Department of Energy
- Green Energy Auction Program (GEAP Round 4)
