Manila Electric Co. (Meralco) subsidiary MGen Renewable Energy Inc. (MGreen) and its foreign partner Vena Energy have successfully secured financial close for the 550-megawatt (MW) Bugallon Solar Power Project in Pangasinan, marking a significant step forward in the country’s renewable energy sector.
The landmark project, set to be completed by the fourth quarter this year, is poised to generate approximately 958 gigawatt-hours (GWh) of clean energy annually. This will be enough to power over 810,000 households while reducing the country’s carbon footprint by avoiding more than 640,000 tons of greenhouse gas emissions—equivalent to planting 11 million trees.
The project’s financing includes a Green Loan facility amounting to P18.3 billion (USD325 million), secured from local banks Security Bank Corp., Rizal Commercial Banking Corp., and Philippine National Bank. The loan underscores growing investor confidence in green energy projects, particularly in a region with ambitious decarbonization goals.
The Bugallon solar project will not only contribute to the Philippines’ renewable energy capacity but also provide an economic boost to the local community. During its construction phase, it is expected to generate approximately 7,000 jobs, with local residents from Bugallon and surrounding areas given priority.
“This financial close represents a major milestone in advancing renewable power generation in the Philippines,” said Simone Grasso, chief investment officer of Vena Energy. “It underscores the trust our banking partners have in our initiatives and will be critical in expanding our green energy footprint in the region as we continue to accelerate the energy transition.”
In addition to the Bugallon project, MGreen and Vena Energy also share a 50:50 stake in the 68-MW Garcia 2 solar project in Ilocos Norte, further cementing their partnership in the Philippine renewable energy market.
As the renewable energy arm of Meralco Power Gen Corp., MGreen commits to expand its portfolio of clean energy solutions, while Vena Energy—headquartered in Singapore—continues to grow its portfolio of solar, wind, and energy storage projects across the Asia-Pacific region.
With this financial development, both companies signal their commitment to supporting the country’s green energy ambitions, while tapping into the rapidly growing clean energy market in Southeast Asia.
