- SPNEC has announced securing a renewable energy supply agreement for its 500 MW DC solar project in the Philippines
- It will supply around 97.8 MWh of solar power to the AEC from 6.00 AM to 6.00 PM for 10 years
- This provides SPNEC a base of contracted revenues, while being able to sell the rest of its energy to the spot market or other off-takers
Local electricity utility in the Philippines, Angeles Electric Corporation (AEC) has entered into a 10-year renewable power supply agreement (PSA) for solar energy from a 500 MW DC project being developed by Solar Philippines Nueva Ecija Corp. (SPNEC) in Peñaranda, Nueva Ecija.
In a statement issued, SPNEC said it cleared a competitive selection process to win this deal and will supply around 97.8 MWh of solar power to AEC from 6.00 AM to 6.00 PM. “This would provide SPNEC a base of contracted revenues, while being able to sell the rest of its energy to the spot market or other off-takers,” stated SPNEC.
Incorporated in 2016, SPNEC is a wholly owned subsidiary of Solar Philippines Power Project Holdings, Inc., part of solar developer, owner and operator SP Group. It is a special purpose vehicle (SPV), listed on the national stock exchange, to develop the Nueva Ecija Solar Project in phases. Under phase I A, 50 MW DC is planned to be commissioned by the end of 2022, and 175 MW DC under phase I B by early 2023. Phase II is planned to have 275 MW DC, to complete the 500 MW DC project.
“The contracting of the first phase of our solar farm shows that renewable energy in the Philippines is a supply-constrained market. This reinforces our drive to expand SPNEC’s capacity, to meet the great demand for renewable energy in the Philippines,” said Solar Philippines Founder Leandro Leviste.
Solar Philippines Power Project Holdings’ joint venture with Prime Infrastructure Capital, Terra Solar has proposed the Manila Electric Company (Meralco) to develop 2.5 GW solar with 4,000 MWh storage for PHP 6.08 ($0.12) per kWh. Meralco recently launched an expression of interest for 850 MW renewables from bidders to challenge this offer by Terra Solar (see Philippines: 850 MW Renewables Tender).
SPNEC is also planning an asset-for-share swaps with its parent company Solar Philippines to develop 10 GW of solar projects by acquiring over 20 solar project companies. To support these plans, it may enter joint ventures and conduct possible stock rights offerings.