MANILA, Philippines — PetroGreen Energy Corp. (PGEC) has secured a project financing facility of up to P1.24 billion from Rizal Commercial Banking Corp. (RCBC) to partially fund the construction of a solar power project in San Pablo, Isabela, as the company expands its renewable-energy portfolio and adds new clean power capacity to the Luzon grid.
The financing will support the development of the Limbauan Solar Power Project, a ground-mounted facility with a total capacity of about 40 megawatts direct current (MWDC), equivalent to 33 MW alternating current (MWAC).
The project is being developed through PGEC subsidiaries Rizal Green Energy Corp. (RGEC) and BKS Green Energy Corp., which signed an Omnibus Loan and Security Agreement with RCBC for the facility.
The deal comes as Philippine power companies accelerate investments in renewable energy amid growing electricity demand and government efforts to increase the share of clean energy in the country’s power mix.
Two-phase solar project
The Limbauan facility will be developed in two phases, with each phase supported by a separate power arrangement.
The first phase will have a capacity of 6.006 MWDC, or 5.013 MWAC. Its electricity output is backed by a Power Supply Agreement with Isabela II Electric Cooperative (ISELCO II).
The second and substantially larger phase will have a capacity of 33.831 MWDC, or 28.160 MWAC. Its power output was awarded a tariff under the Department of Energy’s second Green Energy Auction (GEA-2).
The two arrangements provide the project with contracted or awarded mechanisms for selling its electricity as the solar facility moves toward commercial operations.
PGEC Vice President for Corporate Services Arlan P. Profeta said the Limbauan project represents another step in expanding the company’s renewable-energy portfolio and supplying clean electricity to the Luzon grid and local electric cooperatives.
RCBC provides project financing
Under the agreement, RCBC will serve as lender and accounts bank, while its investment-banking arm, RCBC Capital Corp., will act as lead arranger.
RCBC Trust Corp. will serve as facility agent and security trustee for the transaction.
RCBC Institutional Banking Group Head Elizabeth E. Coronel said financing projects such as Limbauan supports the bank’s focus on sustainable finance and the country’s transition toward cleaner energy.
The transaction also strengthens an existing relationship between the two companies. Both PGEC and RCBC are members of the Yuchengco Group of Companies, while RCBC has previously financed other renewable-energy projects developed by PetroGreen and its subsidiaries.
More renewable projects financed by RCBC
The Limbauan financing is not the first time PGEC has turned to RCBC to fund renewable-energy infrastructure.
In November 2025, PGEC secured P826 million in RCBC financing for its Bugallon Solar Power Project in Pangasinan.
Earlier that year, the company obtained a P498-million facility for the San Jose Solar Power Project in Nueva Ecija.
In July 2026, PGEC subsidiary EcoSolar also secured P635.9 million in RCBC financing for a 20-MW/40-MWh battery energy storage system in Panitan, Capiz. PGEC described the facility as its first battery-storage project and the fourth project it had financed with RCBC within three years.
The series of transactions illustrates the growing role of project financing in PGEC’s expansion into solar and energy-storage infrastructure.
Transmission connection also moving forward
The development of Limbauan’s second phase is also supported by a separate transmission project.
The Energy Regulatory Commission recently authorized BKS to develop a dedicated point-to-point transmission line for the second phase, with an estimated cost of P260.66 million.
The line is intended to connect the project’s additional solar capacity to the electricity grid, an important step for bringing the larger second phase into operation.
The transmission investment highlights a broader challenge facing renewable-energy developers: building generation capacity alone is not enough if adequate grid connections are unavailable.
Adding clean power to Luzon
Once completed, the Limbauan project is expected to contribute additional renewable electricity to the Luzon power system while providing power to local electric-cooperative customers.
Its combined capacity of about 40 MWDC is relatively modest compared with the country’s largest solar developments, but the project forms part of a growing pipeline of renewable-energy investments being developed across the Philippines.
PGEC’s broader portfolio includes solar projects in Bohol, Nueva Ecija and Tarlac, as well as the Maibarara geothermal facility in Batangas. The company is also involved in offshore oil operations in Gabon through its parent group.
The company’s renewable investments come as the Philippines seeks to increase clean-energy capacity while meeting rising electricity requirements from households, businesses and industries.
Renewable energy pipeline continues to expand
The financing for Limbauan gives PetroGreen another source of capital to advance its renewable-energy expansion while spreading its generation portfolio across different technologies and locations.
For RCBC, meanwhile, the transaction adds another renewable-energy project to its sustainable-finance portfolio.
The project also demonstrates how long-term power arrangements, government renewable-energy auctions and bank financing can work together to move solar developments from the planning stage toward construction and eventual grid connection.
With both phases of the Limbauan project already supported by power arrangements, and the second phase’s transmission connection receiving regulatory approval, the Isabela development is moving closer to adding new solar capacity to the Luzon grid.
For PetroGreen, the P1.24-billion RCBC facility therefore represents more than construction financing: it is another step in building a larger renewable-energy portfolio as the Philippines continues its transition toward cleaner sources of electricity.
