CREC raises P4.4-B fund for Pangasinan solar project

Citicore Renewable Energy Corp. (CREC) has obtained a P4.4-billion loan from Security Bank to help finance its 125-megawatt (MW) Pangasinan solar park.

In a statement on Thursday, the company led by businessman Edgar Saavedra said the new funds would be crucial in completing the Citicore Solar Pangasinan project. This is part of the group’s goal of racking up their first 1,000 MW of generating capacity.

“Project finance is key to realizing the renewable energy transition, with projects like Citicore Solar Pangasinan able to move faster and mitigate risks with the support of partners like Security Bank …,” said Oliver Tan, president and chief executive officer of CREC.

The facility’s first phase is seen to launch commercial operations within the year. Meanwhile, the second portion is eyed for completion by April 2026.

The planned facility has been tagged as an energy project of national significance. Such status enables CREC to fast-track its permitting processes.

The Pangasinan solar park is one of the three projects in the province that CREC won during the government’s second round of green energy auction (GEA) program in 2023. The other two are the Citicore Solar Pangasinan 2 in Binalonan and Citicore Wind Pangasinan.

In July 2023, CREC was one of the big winners in the bidding as it secured 916.58 MW of projects. These include solar and wind capacity, giving the company a 20-year off-take contract with the government.

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The GEA program is an initiative of the government to accelerate the shift to clean energy. Winning bidders can then secure power supply agreements with the government, ensuring the profitability of the projects.

Currently, the group’s installed capacity is around 280 MW from its 10 solar power facilities. But it was bullish about growing its portfolio to 5,000 MW by 2028.

CREC also plans to spend more than $1 billion on capital expenditures this year. The capex program is intended to further support the firms’ growth momentum, including the rollout of its second 1,000 MW.