Saudi utility developer ACWA Power has signed a landmark lease agreement with the Philippine government to develop an integrated solar photovoltaic and battery energy storage facility inside New Clark City, a master-planned smart city located approximately 100 kilometers north of Manila. The deal marks the company’s first formal land agreement with a Philippine government agency and signals a significant expansion of its footprint across Southeast Asia.
A 500-Hectare Clean Energy Complex at the Heart of a Smart City
Under the agreement signed between ACWA Power Philippines — the Saudi developer’s local subsidiary — and the Bases Conversion and Development Authority (BCDA), the project will occupy a 500-hectare site within a special economic zone near Manila. At full build-out, the facility is projected to reach a generation capacity of up to 500 megawatts (MW), with an estimated investment of at least $400,000 per megawatt.
The complex will combine utility-scale solar PV panels with a battery energy storage system (BESS), designed to provide stable, round-the-clock clean power to New Clark City’s data centres, advanced manufacturing hubs, and emerging artificial intelligence infrastructure. The Philippine government has been actively promoting New Clark City as a national hub for AI-driven industries and next-generation manufacturing.
Initial project details indicate a solar capacity of approximately 300 MW paired with a 660 MWh battery storage system, positioning the development as one of the most ambitious integrated clean energy facilities in Southeast Asia.
A Strategic Move for Saudi Arabia’s Energy Export Ambitions
The agreement is the culmination of clean energy discussions between ACWA Power and Philippine President Ferdinand Marcos Jr., initiated during bilateral talks last year. Philippine Finance Secretary Frederick D. Go described the deal as a direct outcome of sustained government-level reforms aimed at attracting long-term foreign investment into the country’s energy and industrial sectors.
“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,” Secretary Go said in a statement issued 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.”
ACWA Power Chief Executive Officer Samir Serhan underscored the project’s strategic significance beyond energy generation, framing it within the broader transformation of New Clark City into a globally competitive development destination.
“New Clark City reflects the kind of integrated, future-ready development that global energy investors are looking for,” Serhan said. “We see an opportunity to help power industrial growth while lowering energy costs and supporting the country’s broader economic ambitions.”
New Clark City: The Philippines’ Bid for a Next-Generation Economic Hub
Situated in the province of Tarlac in Central Luzon, New Clark City is one of the Philippine government’s flagship infrastructure and development initiatives. Administered by the BCDA on land formerly occupied by US military installations, the development spans thousands of hectares and is envisioned as a fully integrated urban centre built around clean energy, digital infrastructure, and advanced industry.
The injection of utility-scale renewable power through the ACWA Power partnership is expected to accelerate the city’s attractiveness to data centre operators, semiconductor manufacturers, and multinational corporations seeking carbon-neutral production bases within Southeast Asia.
ACWA Power’s Southeast Asia Expansion Gains Momentum
The Philippines deal represents a milestone in ACWA Power’s push into Southeast Asian markets, a region the company has identified as a key growth corridor alongside its established presence across the Middle East, Central Asia, and Africa. The agreement is expected to catalyse further investments in the Philippine energy sector as the country pursues an accelerated transition to renewable energy under President Marcos’s administration.
Beyond the immediate generation and storage infrastructure, the project is anticipated to generate significant employment during construction and operations, and to contribute to the Philippines’ energy security by reducing dependence on imported fossil fuels.
ACWA Power is a Saudi-listed utility developer and operator headquartered in Riyadh, Saudi Arabia. The company develops, invests in, and operates a diversified portfolio of power generation and water desalination plants across 15 countries. As of year-end 2025, ACWA Power manages approximately USD 114.8 billion in assets under management, representing a total contracted gross capacity of 93 gigawatts — of which 53.4 percent is derived from renewable energy sources. The company operates 111 assets globally and serves state utilities and industries through long-term offtaker contracts under public-private partnership and utility services outsourcing models. ACWA Power is a key enabler of Saudi Arabia’s Vision 2030 programme, which targets 59 gigawatts of renewable energy capacity by 2030.
The Bases Conversion and Development Authority is a government-owned and controlled corporation operating under the Office of the President of the Philippines. Established to transform former Philippine and US military bases into productive economic assets, BCDA is mandated to develop these properties into premier centres of economic growth in partnership with the private sector. Its most prominent undertaking is New Clark City in Tarlac, a master-planned smart city development spanning thousands of hectares that serves as a blueprint for sustainable, technology-driven urbanization in the Philippines. BCDA manages and develops these assets with a mandate grounded in integrity, excellence, and service to the Filipino people.
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