MANILA: Saudi utility developer ACWA Power will develop an energy storage facility powering a new smart city in the Philippines as part of a deal with the country’s government.
The 500-hectare site will be constructed in a special economic zone near Manila.
The deal was signed on Tuesday by the Saudi giant’s Philippine subsidiary and the Bases Conversion and Development Authority — a state agency managing and redeveloping former Philippine and US military bases.
The project carries an estimated investment of at least $400,000 per megawatt and can reach a total capacity of up to 500 MW at full build-out, according to BCDA data.
Under the lease with the BCDA, ACWA Power Philippines will develop an integrated solar photovoltaic and battery energy storage system facility in New Clark City, a master-planned smart city development 100 km north of Manila.
The Philippine government has been promoting New Clark City as a hub for artificial intelligence and advanced manufacturing.
“This will help unlock new investments, create quality jobs for Filipinos, and foster more resilient growth for Central Luzon and the Philippines for years to come,” Philippine Finance Secretary Frederick D. Go said in a statement released by the BCDA.
“We have worked tirelessly with our partners across the government to bring this investment to fruition, and we are pleased to see those efforts finally bear fruit. ACWA Power’s decision to invest is a strong vote of confidence in the country and the reforms being pursued under this administration.”
The project is part of the clean energy investments presented by ACWA to President Ferdinand Marcos Jr. last year and marks the company’s first land agreement with a Philippine government agency.
It is also seen as a milestone in the company’s Southeast Asia expansion.
“New Clark City reflects the kind of integrated, future-ready development that global energy investors are looking for,” ACWA CEO Samir Serhan said.
“We see an opportunity to help power industrial growth while lowering energy costs and supporting the country’s broader economic ambitions through reliable renewable energy.”
