The renewable energy (RE) arm of Meralco PowerGen Corporation, MGen Renewable Energy Inc. (MGreen), and one of the leading green solutions providers in the Asia-Pacific region, Vena Energy, announced that they have reached financial close on the 550-megawatt (MW) Bugallon Solar Power Project in Bugallon, Pangasinan. The project is expected to create 7,000 jobs for Pangasinenses and nearby provinces.

The RE firms stated on Wednesday that construction of the project has commenced and is expected to be completed by the fourth quarter of 2025.

The Bugallon Solar Power Project has secured a Green Lane Certification from the Board of Investments, the official communications group of the two RE companies told the DAILY TRIBUNE.

Once operational, the project will produce approximately 958 gigawatt hours (GWh) of clean energy annually, enough to power over 810,000 Philippine households. It will also offset more than 640,000 tons of greenhouse gas emissions, equivalent to planting 11 million trees.

"The financial close of the Bugallon Solar Power Project represents a significant milestone in advancing renewable power generation in the Philippines," said Simone Grasso, chief investment officer at Vena Energy.

"We appreciate the unwavering confidence and support of our banking partners in our initiatives. 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," he added.

'Aligning' strengths and vision

Dennis Jordan, president and CEO of MGreen, emphasized that the financial close marks the beginning of a meaningful collaboration between two like-minded organizations.

“We bring our collective strengths and visions into alignment, enabling us to make a definitive step towards making a greater impact in the country's journey towards a cleaner and sustainable energy future. Together, we are not only expanding our horizons but also setting a powerful example for others to follow," Jordan stressed.

The project is partially financed through an ₱18.3 billion ($325 million) Green Loan facility. Security Bank Corporation, Rizal Commercial Banking Corporation (RCBC), and Philippine National Bank (PNB) are serving as lenders and hedging banks.

SB Capital Investment Corporation, RCBC Capital Corporation, and PNB Capital and Investment Corporation are the mandated lead arrangers, with RCBC acting as the Green Loan Coordinator.

Yvonne Marcelo, Security Bank Senior Vice President and Corporate Banking Head, stated, “We’re proud to support Vena Energy and MGreen in this project — aligned with our commitment to finance sustainable initiatives promoting economic growth and environmental stewardship. This collaboration reflects our role in contributing to the Philippines' renewable energy sector and supporting its sustainability objectives. Our BetterBanking mission ensures that we provide financial services while also engaging in efforts to improve our communities and the environment."

RCBC’s Group Head of Corporate Banking, Elizabeth E. Coronel, noted, "RCBC continues to be at the forefront of the banking industry’s shift towards lending to more and more renewable energy projects in the country. As such, we are a proud partner of Vena Energy and MGreen in building one of the largest solar power projects in the Philippines."

Allan Ang, FSVP and Corporate Banking Group Head at PNB, said, “Philippine National Bank is honored to partner with Vena Energy to build the largest solar power plant in the country, by far. We share with Vena Energy the vision for a cleaner and greener environment and PNB is taking important steps towards sustainability. Just recently, we have returned to the bond market with a $300-million sustainability bond offering.”