ILOILO — A Singapore-based subsidiary of Germany-headquartered ib vogt has broken ground on the 99-megawatt-peak Luca Solar Power Plant in Ajuy, Iloilo. The project marks a significant milestone in the company’s expansion in the Philippines.
A Major Boost for Visayas Clean Energy
The Luca facility combines 99 MWp of solar photovoltaic capacity with a 4 MW / 16 MWh battery energy storage system. It is ib vogt’s first hybrid solar-plus-storage development in the Visayas. Once operational, it will generate over 160 GWh of clean electricity annually.
That output is sufficient to power more than 85,000 Filipino households while avoiding over 70,000 tonnes of carbon dioxide emissions each year. The integrated battery system will enhance grid stability and improve dispatchability across the Visayas grid, supporting the region’s growing energy demand.
The project was awarded under the Green Energy Auction program, with 60 MWac under GEA-2 and 20 MWac under GEA-4. It will connect to the National Grid Corporation of the Philippines’ 138-kilovolt Barotac Viejo Substation, reinforcing the local transmission network.
Financing Secured for Development
In June, ib vogt APAC closed a PHP 4.5-billion senior debt facility with Rizal Commercial Banking Corporation as sole lender. RCBC Capital Corporation acted as lead arranger. The financial close confirmed the project’s bankability under the Green Energy Auction framework.
David Ludwig, CEO of ib vogt APAC, said the project represents a turning point in the company’s momentum in the Philippines. He noted that breaking ground on Luca doubles the capacity the company has built and under construction in the country. A third, larger project is also expected to enter construction before year-end.
Jose Luis Echávarri, managing director and COO of ib vogt APAC, highlighted the predictable energy costs the project will deliver over its 20-year life. He also emphasized the jobs it will create, including hundreds of local positions during construction and skilled roles for the plant’s operational life.
A Priority Market for Growth
The Philippines is ib vogt’s priority market in Southeast Asia, with a local development pipeline exceeding 1 GWp. The company aims to reach around 500 MW of capacity in operation and construction in the country by the end of 2026.
This target follows the energization of the Tantangan Solar Power Plant in South Cotabato, the company’s first solar-and-storage hybrid project in Southeast Asia. That facility began commercial operations less than a year after its groundbreaking, demonstrating ib vogt’s delivery capability.
Marissa P. Cerezo, director of the Department of Energy’s Renewable Energy Management Bureau, said the country needs an energy system that is not just sufficient but also reliable, resilient, diversified, and increasingly sustainable. She noted that energy demand will continue to grow as the economy expands.
Ajuy Mayor Loida Espinosa welcomed the development, stating that beyond electricity, the project will generate employment, economic activity, and investments. These benefits will contribute to the growth of Barangay Luca and the wider municipality.
International Partnership Support
The project received crucial backing from the United Kingdom through British International Investment. British Ambassador Sarah Hulton OBE said the UK is proud to support the 99-MW Luca Solar Project. She emphasized that the project will deliver clean electricity, strengthen energy security in the Visayas, and support the Philippines’ transition to a lower-carbon future.
The collaboration highlights how international partnerships can unlock private-sector investment in renewable energy infrastructure. With financing from BII and Pentagreen Capital, the Luca project demonstrates the role of development finance in accelerating the Philippines’ clean energy goals.
