Security Bank refinances 17.4-MW Bataan solar plant

MANILA, Philippines — Security Bank Corp. has refinanced a 17.4-megawatt solar power plant in Hermosa, Bataan, strengthening its renewable energy portfolio and expanding local bank financing for projects that supply electricity to electric cooperatives.

The bank acted as the sole lender for the Solana Solar Beta Inc. project, which generates power for Peninsula Electric Cooperative Inc. (PENELCO).

The solar facility is expected to produce about 35.5 gigawatt-hours of electricity annually. It supplies the equivalent of 10 MW of generation to PENELCO under a 20-year power supply agreement.

PENELCO has a peak demand of about 148 MW and serves customers across several barangays and municipalities in Bataan. The solar plant is directly connected to the cooperative’s distribution system, allowing renewable energy to be delivered within its franchise area.

“Electric cooperatives play an important role in delivering electricity to communities across the country,” Security Bank corporate banking group head Yvonne Marcelo said.

“Through this transaction, we are supporting the delivery of additional renewable energy capacity in Bataan while establishing our first partnership with Climate Fund Managers and Norfund.”

Marcelo said the bank would continue to support investments that contribute to the expansion of renewable energy infrastructure in the Philippines.

The project was developed by Solana Solar Beta, part of regional renewable energy developer CN Green Roof Asia’s portfolio of rooftop and utility-scale solar developments across Southeast Asia.

It is a joint venture between Climate Fund Managers’ European Union-supported Climate Investor One Fund and Norfund, the Norwegian investment fund for developing countries.

The transaction marks Security Bank’s first partnership with the two institutions, which invest in sustainable infrastructure and climate-related projects in emerging markets.

Climate Fund Managers investment director Ryan Oetama said the transaction demonstrated the growing role of Philippine banks in financing renewable energy infrastructure.

“The financing of the Bataan solar project reflects increasing confidence in renewable energy as an attractive investment opportunity that can deliver both commercial returns and positive environmental impact,” Oetama said.

CN Green Roof Asia CEO Steve Rawles said the refinancing showed that well-structured renewable energy projects continued to attract strong financial support.

The Hermosa facility brings the number of renewable energy developments financed by Security Bank nationwide to 24, representing a combined installed capacity of 4.30 gigawatts.

The bank’s total sustainable finance disbursements reached P116.95 billion as of end-May.

Security Bank said its participation also supports a segment that has received limited financing from local banks, particularly renewable energy projects supplying power to electric cooperatives.