TotalEnergies, a diversified multinational energy company, and Nextnorth, a Philippines-based renewable energy project developer, have reached financial close and started construction of a 440 MWp solar power project in the Philippines.
The project has an estimated cost of about $300 million. It is being financed by Sumitomo Mitsui Banking Corporation, ING Bank NV, and Standard Chartered.
The project is located in the City of Ilagan, in the Province of Isabela. TotalEnergies owns 65% of the project, while Nextnorth owns the remaining 35%. The companies expect the solar project to begin operations by the end of 2027. Once operational, the project is expected to generate 13.5 TWh of electricity over 20 years, according to the companies.
“We are delighted with our partner Nextnorth to start the construction of this major solar project in Philippines, thereby contributing to the country’s goal of increasing renewables in its generation energy mix. These 440 MW will contribute to the 9 GW renewables portfolio that we are combining with Masdar through a 50/50 joint venture across nine Asian countries”, said Olivier Jouny, SVP Renewables at TotalEnergies.
More than half of the electricity generated by the project will be sold through long-term offtake agreements with two Retail Electricity Suppliers, AdventEnergy and PrimeRES. The electricity will supply commercial and industrial users seeking to decarbonize their operations.
The remaining electricity will be sold to the national grid under the project’s award in Round 4 of the Philippines government’s Green Energy Auction Program.
Founded in 2022 and headquartered in Metro Manila, Nextnorth, has a portfolio of clean projects totaling more than 800 MW in active development and construction.
Previously, in 2024, TotalEnergies, sold of 50% of a portfolio of 2 GW solar and battery energy storage projects in Texas to Apollo, a New York-based asset management firm. The transaction will provide the company $800 million in cash, with $550 million in equity and $250 million in shareholder loan refinancing.
According to Mercom’s recently released Q1 2026 Solar Funding and M&A report, announced large-scale solar project funding increased by 61% in Q1 2026 compared with the funding raised in the same period in Q1 2025.
