Norwegian and Danish funds invest in major Philippine solar project – Scandasia

Posted on October 19, 2026 by Now.Solar

Nordic News, Business and Life in Asia
Norway’s Norfund and Impact Fund Denmark have agreed to acquire a combined 49 percent stake in a 500-megawatt solar power project in the Philippines. The investment will support one of the country’s largest solar developments, expected to supply electricity equivalent to the needs of 650,000 households.
The two Nordic development finance institutions announced the agreement on 16 October 2026 together with Singapore-based renewable energy developer Vena Energy, which is developing the Ixus Bugallon Solar Power Project in Bugallon, Pangasinan province, north of Manila.
The Norwegian and Danish funds are investing a combined USD 72 million in the project, according to Norfund. The project has also secured approximately USD 310 million in loans from eight international banks.
Construction is already underway, and the solar park is expected to begin operating in 2027.
Once operational, the facility is expected to generate approximately 815 gigawatt-hours of electricity annually, equivalent to the consumption of around 650,000 Philippine households. The project partners estimate that it will avoid approximately 570,000 tonnes of carbon dioxide emissions each year.
Erik Sandersen, CEO of Norfund, said the project illustrates the purpose of Norway’s Climate Investment Fund.
“The project is expected to avoid more than half a million tonnes of CO2 every year. We are very happy to partner with Vena Energy and Impact Fund Denmark to contribute to the renewable energy transition in the Philippines.”
Lars Bo Bertram, CEO of Impact Fund Denmark, pointed to the Philippines’ growing electricity demand and continued dependence on coal.
“To ensure that economic growth does not lead to even higher emissions, significant investment in renewable energy is needed,” he said. “This project demonstrates how economic growth and the green transition can go hand in hand.”
The new solar park will be located next to Vena Energy’s existing 550-megawatt Bugallon solar facility. Together, the two projects will represent more than one gigawatt of installed solar capacity in Pangasinan.
The project marks the first investment in the Philippines by Norway’s Climate Investment Fund, which is managed by Norfund. It is also Impact Fund Denmark’s first energy investment in the country.
Norwegian Minister of International Development Åsmund Aukrust attended the launch of the investment in connection with the World Bank annual meetings in Bangkok.
The Philippines currently generates a large proportion of its electricity from coal, while electricity demand is expected to increase considerably over the coming decades.
Reik Haahr Müller, Managing Director and Co-Head of Green Energy & Infrastructure at Impact Fund Denmark, described the investment as an important entry into a new Southeast
Editor-in-Chief • ScandAsia Publishing Co., Ltd. • Bangkok, Thailand























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