Shell Energy’s First PPA Featuring the Leyte solar project in the Philippines
Shell Energy Philippines, Inc. (SEPH), an affiliate of Shell PLC, has signed a 15-year power purchase agreement (PPA) with Greenlight Renewables for the first phase of the San Isidro Solar Power Project in Leyte. The deal secures 120 megawatts peak (MWp) of electricity and marks Shellโs significant entry into the Philippine solar energy market, enhancing its growing portfolio of renewable energy assets in the country.
The solar project’s first phase is set to begin commercial operations in the second quarter of 2026. It will supply power to SEPH’s commercial and industrial customers in the Luzon and Visayas regions through the Wholesale Electricity Spot Market (WESM). The company currently serves various sectors, including manufacturing, telecommunications, food and beverage, real estate, hospitals, and schools.
Shell Energy highlighted the strategic importance of this deal, emphasizing its role in expanding the companyโs renewable energy footprint. The companyโs Vice President for Renewable Energy and Offshore Power, Jovy Hernandez, noted that this agreement is a significant milestone in Shellโs commitment to providing cleaner and reliable energy solutions.
โThis agreement is a strategic milestone in our journey to providing cleaner, reliable, and competitive energy solutions to our customers,โ Hernandez said.
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Shell Energyโs Growing Renewable Portfolio, Including the Leyte solar project
Shell Energy Philippines, Inc. currently manages a diverse portfolio of power generation assets, including a 100-megawatt Battery Energy Storage System (BESS) in Bataan and the 170-megawatt Malampaya gas-fired power plant in Batangas. The BESS, which began operations in March of this year, is the companyโs largest in the Philippines and its first in Southeast Asia. This facility is located in Bataan, a province that is quickly becoming a hub for clean energy, with other major projects like a 153.5MW solar plant also under development.
The BESS is designed to support the grid by providing ancillary services, such as regulating reserves, contingency reserves, and dispatchable reserves. These services help stabilize the grid, particularly during peak demand or unexpected outages. The system can also store excess energy generated during off-peak hours and release it when demand rises.
The Malampaya gas-fired power plant, acquired from Shell Philippines Exploration B.V. in 2023, is another critical asset in Shell Energyโs portfolio. It is one of the first natural gas-fired power plants in the country and plays a vital role in providing reliable and cleaner energy to the grid.
Shell Energyโs Commitment to the Leyte solar project and Renewable Energy
Shell Energyโs partnership with Greenlight Renewables is part of its broader strategy to diversify its energy portfolio and increase its renewable energy capacity. The company aims to be a key player in the Philippinesโ energy transition by investing in various renewable projects, such as solar, wind, and battery storage.
In addition to the solar project in Leyte, Shell Energy is exploring other renewable energy opportunities. These include additional phases of the San Isidro project in Leyte, as well as new developments planned for Zambales and other locations.
Shell Energyโs entry into the Philippine solar market aligns with the countryโs ambitious renewable energy goals. The nation is seeing a surge in large-scale solar investments, from the 180MW solar project acquired by J&V Energy to the monumental 3.5 GW Terra Solar project. These projects are crucial as the Philippines targets a stunning 50% renewable power share by 2040, with an interim goal of 35% by 2030.
This boom in utility-scale solar also stimulates the local supply chain and supports the growth of Philippines solar panel manufacturing. Understanding the basics of solar panel manufacturing highlights how these developments can foster domestic expertise and create new jobs.
The PPA with Greenlight Renewables is expected to provide a stable and long-term supply of renewable energy, supporting Shell Energyโs commitment to sustainability. The companyโs focus on renewables is also in line with Shell PLCโs global strategy to reduce its carbon footprint and transition to a low-carbon future.
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