LANDBANK OKs P800-M loan for Palawan microgrid projects

LAND BANK of the Philippines (LANDBANK) said it approved an P800-million financing package for Archipelago Renewables Corp. (ARC), which plans to develop hybrid renewable energy microgrids in Palawan.

The company will build 16 microgrids and a 175-kilometer distribution network capable of supplying electricity to about 7,100 households, more than 300 small businesses, and key community facilities within the franchise area of the Palawan Electric Cooperative.

The hybrid systems will combine solar photovoltaic technology, battery energy storage, and diesel to ensure stable and affordable power to more than 30,000 residents in the province.

“By combining clean solar energy with innovative financing, we are strengthening communities, supporting local enterprises, and accelerating inclusive growth in underserved areas,” LANDBANK President and Chief Executive Officer Lynette V. Ortiz said in a statement on Tuesday.

ARC is a special-purpose company backed by a consortium consisting of Maharlika Clean Power Holdings Corp., CleanGrid Partners Pte. Ltd., and WEnergy Global Pte. Ltd.

ARC President Quintin Jose V. Pastrana said the partnership represents the “largest private-sector venture in off-grid electrification.”

WEnergy Global Chief Executive Officer Atem S. Ramsundersingh said the partnership demonstrates how development financing can generate both economic and social benefits.

“We are grateful to LANDBANK for going to the ground, seeing the impact firsthand, and joining us in the hard work of rural electrification and keeping development financing meaningful,” he added.

LANDBANK said the project supports efforts to further electrify underserved communities while reducing reliance on fossil fuel-based power generation through the greater use of renewable energy.

“The initiative also forms part of the bank’s broader thrust to advance sustainability and climate-resilient development by supporting investment in renewable energy, environmental protection, and inclusive growth,” it added. — Justine Irish D. Tabile