San Ignacio to build 440 megawatt solar power, hydro projects in Isabela

CITY OF ILAGAN, Isabela -- San Ignacio Energy Resources Development Corporation (‘San Ignacio’) which is part of the Nextnorth Energy group is developing over 450 Megawatts of solar PV and hydro projects in northern Luzon in a business venture that’s expected to provide employment to roughly 4,500 workers.

"San Ignacio” has recently signed a Solar Energy Operating Contract with Secretary Raphael P. M. Lotilla of the Department of Energy, kicking off the project to develop a 440 MWp/336 MWac solar PV project in Ilagan City, Isabela Province.

San Ignacio has reached an agreement with Total Eren S.A. (‘Total Eren’) to invest in the project through San Ignacio making it a Filipino-French joint venture.

Total Eren is a renewable Independent Power Producer (IPP) with over 3.7 GW of wind and solar PV projects under construction or in operation globally.

Report said that in the Philippines, Total Eren has already invested in a 60 MWP operating solar PV project in Tarlac province.

Total Eren, which counts French multi-energy company Total Energies as one of its strategic shareholders, brings extensive experience in the development, financing, construction, and operation of renewable energy power plants globally, together with a strong commitment to the Philippines market.

The project, which will be considered among the biggest in the country, will be built on around 400 hectares of available land located along the Northern Luzon high voltage transmission network of the National Grid Corporation of the Philippines (NGCP").

The project is expected to bring an estimated P18 billion in investment.

The construction will start in 2024 and start feeding electricity into the grid in 2025.

The construction of this project is expected to provide employment to roughly 4,500 workers.

With an expected electricity generation of around 700 GWh per year, San Ignacio can supply one million Philippine households with clean, renewable energy.

The new administration has set ambitious goals to achieve 35% renewable energy by 2030 and 50% by 2040. This compares to a current share of renewable energy of 22%.

To achieve this, the administration has, among other measures, changed the annual increase in renewable energy use for on-grid areas under the Renewable Portfolio Standards (RPS) from 1% to 2.52% starting in 2023.

At one Renewable Energy Certificate ("REC") per MWh. San Ignacio's annual output will generate around 700,000 RECS per year which market participants can acquire to comply with their RPS obligations.

The public is aware that electricity prices in the Philippines have skyrocketed as a result of the increasing import price of coal and a falling peso.

Meeting or exceeding the administration's renewable energy goals will help make the Philippine households less vulnerable to rising costs caused by international developments. Regionally power rates have increased to as high as 21 peso per kWh.

President of San Ignacio Miguel Mapa said: "As we now more than ever realize the importance of indigenous, stably priced, and low-carbon energy sources, we at San Ignacio are motivated by the scale of positive impact our project will bring once energized,” said Mapa.

“We are likewise pleased to be working with Total Eren, an experienced renewable energy player active globally, and are grateful for their confidence to invest in our country's renewable energy story, which will have immeasurable impact on the generations of Filipinos to come," he added.