SP New Energy Corp. (SPNEC) is seeking a new location for its 280-megawatt (MW) solar power project in Santa Rosa, Nueva Ecija.
“We’re looking at possible replacement at the same capacity but maybe different location,” SPNEC President and Chief Executive Officer Emmanuel V. Rubio told reporters last week.
In a regulatory filing last month, SPNEC said that it had asked the Department of Energy (DoE) to terminate the award of the project it won during the first round of Green Energy Auction (GEA) in 2022.
Mr. Rubio said that the company’s request for termination mainly stemmed from transmission constraints.
Formerly Solar Philippines Nueva Ecija Corp., SPNEC’s primary purpose is to construct, operate, and maintain power-generating plants and related facilities for renewable energy.
“We’re drafting now actually a reply looking for a legal basis really to stand firm, but we’re willing to actually replace the capacity in other areas where we can actually evacuate the energy,” Mr. Rubio said.
He said that the company will ask the DoE if it can consider “a certain level of repricing” and that it is willing to accept “some concessions on the penalties but not the bond.”
Under the terms of reference for GEA-1, the performance bond guarantees the winning bidder’s faithful performance under the GEA program guidelines and related agreements.
Based on data from the DoE as of end-June, the solar power project is targeted for commercial operation by 2025.
SPNEC, through its subsidiary Terra Solar Philippines, Inc., is currently developing a power project consisting of a 3,500-MW solar power plant and a 4,000-megawatt-hour energy storage system.
The company recently announced the $600-million (approximately P34 billion) investment made by UK-based investment firm Actis in Terra Solar, representing 40% stake upon closing.
The first phase of the project is scheduled to be delivered by 2026, while Phase 2 is targeted for 2027.
SPNEC is controlled by the Pangilinan group through MGen Renewable Energy, Inc., a subsidiary of Meralco PowerGen Corp., which is the power generation arm of Manila Electric Co. (Meralco).
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.
Hasting Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
