The photo shows a neighbouring solar power project, illustrating the scale and landscape of the new project currently under construction.
The Philippines has enormous potential for solar energy. Yet more than half of the country’s electricity is currently generated from coal, while solar energy accounts for only around 4 per cent. Impact Fund Denmark is now investing in a new solar power plant in northern Luzon, north of the capital Manila.
The investment will finance Lasso 2, a 500 MW solar power plant, making it one of the largest solar facilities in the Philippines. The project is currently under construction and is expected to become operational in 2027.
Impact Fund Denmark and Norfund have signed agreements on investing a combined 49% equity interest in the 500 MWp Ixus Bugallon Solar Power Project in Bugallon, Pangasinan, Philippines.
Once fully operational, Lasso 2 is expected to generate around 815 GWh of electricity annually. This corresponds to the electricity consumption of approximately 650,000 Filipino households. The project is expected to reduce the country’s CO₂ emissions by around 570,000 tonnes annually.
The Philippines is a growing economy, and demand for electricity is rising rapidly. However, a large share of the country’s electricity currently comes from coal. If economic growth is not to result in even higher emissions, massive investment in renewable energy is needed. Lasso 2 demonstrates how economic growth and the green transition can go hand in hand.
Lasso 2 is a strong example of green infrastructure, combining significant climate impact with long-term contractual revenues and the mobilisation of Danish and international project financing. It also marks Impact Fund Denmark’s first energy investment in the Philippines, opening up an important market in Southeast Asia
Vena Energy, which is developing and will operate the solar power plant, is one of the largest renewable energy developers and operators in the Asia-Pacific region. The company has 3.2 GW of solar and wind energy in operation, with a further approximately 4 GW under construction or development.
The investment is being announced shortly before COP31, where the need to mobilise more capital for the green transition in emerging and developing economies will be a key theme. Public funding alone will not be sufficient, and the project is an example of how public and private capital can come together to enable concrete green investments.
The investment is made through the Danish SDG Investment Fund II, established by Impact Fund Denmark together with PenSam, P+, PFA, PKA and PBU.
It is covered by a guarantee issued by the European Union under the European Fund for Sustainable Development Plus framework.
The transaction remains subject to the approval of the Philippine Competition Commission and other customary closing conditions.
Communication & Event Manager
Christine Andresen
+45 72 14 31 20
