MGen, Vena Energy seal 550-MW solar project deal

MANILA, Philippines — Meralco PowerGen Corp. (MGen) of tycoon Manuel V. Pangilinan has completed its investment agreement with Singapore-based Vena Energy for the construction of a massive solar farm in Pangasinan.

MGen, through MGen Renewable Energy Inc. (MGreen), announced its partnership with Vena Energy last year for the development and operation of the 550-megawatt (MW) Bugallon solar power project.

The deal’s financial close has paved the way for the start of the project construction, with completion targeted as early as October this year.

“This event marks not just the closing of a deal, but the beginning of an inspiring journey between two like-minded organizations,” MGreen president and CEO Dennis Jordan said.

“We bring our collective strengths and visions into alignment, enabling us to make a definitive step toward making a greater impact in the country’s journey towards a cleaner and sustainable energy future,” Jordan added.

Once operational, the Bugallon project will generate around 958 gigawatt-hours of clean power annually, enough to power over 810,000 households and avoid over 640,000 tons of carbon emissions.

The solar project is expected to open about 7,000 employment opportunities, with a strong focus on workforce participation from local communities in the municipality of Bugallon and surrounding areas.

Earlier, the project secured a green loan facility of around P18.3 billion from Security Bank Corp., Rizal Commercial Banking Corp. and Philippine National Bank.

“This facility will be instrumental in driving our growth in the Philippines as we continue to deliver innovative green solutions to our customers and accelerate the energy transition across the Asia Pacific region,” said Simone Grasso, chief investment officer at Vena Energy.

As a clean energy solutions provider, Vena Energy boasts a portfolio of 39 gigawatts of onshore wind, solar and offshore wind projects across the region.

MGen, on the other hand, is the power generation arm of energy giant Manila Electric Co. It has a total gross generation capacity of 2,425 MW that is capable of supplying baseload, intermediate, peak load and ancillary support to the grid. –  Lawrence Agcaoili