Philippine National Bank Finances $109 Million Solar-Storage Plant in Iloilo

Project Reaches Financial Close

Philippine National Bank has committed to a co-financing arrangement totaling 6.22 billion pesos for a utility-scale solar and battery storage facility in Barotac Viejo, Iloilo. The transaction reached financial close on August 5, enabling Singapore-based developer Levanta Renewables to proceed with construction of a 166-megawatt peak solar installation paired with an 80-megawatt-hour battery energy storage system.

The facility is scheduled to begin commercial operations in the second quarter of 2027, according to Levanta Renewables. Once operational, it will feed into the Visayas grid, which has seen steady demand growth from industrial and residential consumers across the central Philippines.

PNB Capital and Investment Corp., the bank's investment banking unit, acted as one of the arrangers for the financing package. The structure reflects a broader pattern among Philippine commercial banks, which have increased exposure to renewable energy assets as the government pursues a more diversified power mix and as environmental, social, and governance criteria become more prominent in lending decisions.

Renewables as Core Bank Strategy

Allan Ang, first senior vice president and corporate banking group head at PNB, described the transaction as consistent with the bank's Sustainability Framework, which prioritizes projects that meet environmental stewardship and sustainable development benchmarks.

"PNB is proud to support Levanta Renewables in the development of this landmark clean energy project," Ang said. He noted that the financing addresses rising energy demand while contributing to the country's energy security objectives.

The bank has steadily expanded its portfolio of renewable energy loans over the past three years, financing wind, solar, and hydroelectric projects across Luzon, Visayas, and Mindanao. The Iloilo project represents one of the larger single commitments in that portfolio, both in peso terms and in generation capacity.

For Levanta Renewables, the financial close marks a key milestone. CEO Pramod Singh said the company values the confidence shown by PNB and other financing partners. "With strong partners behind us, we are well-positioned to deliver cleaner and more reliable energy for the Philippines," Singh said.

Visayas Grid and Storage Economics

The inclusion of an 80-megawatt-hour battery system is notable. Battery storage allows solar plants to dispatch power during evening peak hours, when demand is high but sunlight is absent. This capability improves the economic profile of solar projects and helps grid operators manage intermittency.

The Visayas grid has experienced periodic supply tightness, particularly during maintenance outages at coal-fired plants or during periods of low rainfall that reduce hydroelectric output. Grid-scale batteries can provide ancillary services such as frequency regulation and can serve as a buffer during supply disruptions.

The Iloilo facility will be among the first large-scale solar-plus-storage projects in the Visayas. Other developers, including domestic and foreign-backed firms, have announced similar hybrid projects in Luzon and Mindanao, reflecting a shift in the economics of renewables as battery costs decline and as power purchase agreements increasingly reward dispatchability.

Capital Flows and Policy Context

The Philippines set a target of 35 percent renewable energy in the power mix by 2030 and 50 percent by 2040. As of early 2026, renewables accounted for roughly 22 percent of installed capacity, with coal and natural gas still dominating baseload generation.

Achieving the 2030 target will require significant capital deployment. The Department of Energy has estimated that the country needs approximately $30 billion in renewable energy investments over the next decade to meet capacity and emissions goals.

Commercial banks, development finance institutions, and private equity funds have all increased activity in the sector. PNB, BDO Unibank, and Bank of the Philippine Islands have each announced sustainability-linked loan facilities or green bond programs in the past 18 months, signaling that renewable energy lending is becoming a core business line rather than a niche offering.

The Levanta project also benefits from the Renewable Energy Act, which provides fiscal incentives including income tax holidays and duty-free importation of equipment. These incentives reduce upfront costs and improve returns for developers and lenders.

Developer Background and Pipeline

Levanta Renewables, headquartered in Singapore, has been active in Southeast Asian solar markets since 2019. The firm has developed projects in Vietnam, Thailand, and the Philippines, focusing on utility-scale installations and corporate power purchase agreements.

The Barotac Viejo project is Levanta's second in the Philippines. The company completed a 120-megawatt solar farm in Batangas in 2025, which sells power under a long-term contract to an industrial offtaker.

Levanta has not disclosed the identity of the offtaker for the Iloilo facility, but industry sources suggest the power will be sold through a combination of bilateral contracts and spot market sales. The battery component allows the developer to capture higher prices during peak demand windows, improving overall project returns.

Construction is expected to begin in the third quarter of 2026, with module procurement already underway. The project will employ several hundred workers during the construction phase and a smaller operations and maintenance team once the facility is online.

What Comes Next

The Iloilo project is one of several large renewable energy transactions expected to close in the Philippines before the end of 2026. Industry analysts estimate that more than 2,000 megawatts of solar and wind capacity will reach financial close this year, the highest annual figure on record.

For PNB, the transaction strengthens its position in sustainable finance at a time when regulators and investors are paying closer attention to banks' exposure to carbon-intensive sectors. The Bangko Sentral ng Pilipinas has issued guidelines encouraging banks to integrate climate risk into their lending and risk management frameworks, and several banks have committed to net-zero targets.

The success of the Iloilo project will likely influence how other lenders approach solar-plus-storage deals. If the facility meets its operational and financial targets, it could serve as a template for similar hybrid projects across the archipelago, accelerating the deployment of dispatchable renewable energy and moving the Philippines closer to its 2030 goals.