MVP group to keep 60% stake in solar farm developer
Offloading more stake in Terra Solar Philippines is not on the table after the group welcomed a new investor over the weekend, tycoon Manuel V. Pangilinan said.
Pangilinan, Manila Electric Co. (Meralco) chair, said global investment firm Actis would be the company’s “only partner” in building a P200-billion solar farm in Nueva Ecija and Bulacan.
“We don’t want to go below 60 percent. And they’re already at 40 [percent],” he told reporters after the group revealed its strategic partnership with the UK-based firm.
On Friday night, Meralco PowerGen Corp. (MGen), the power generation arm of Meralco, officially announced that Actis would hold a 40 percent stake in Terra Solar Philippines in exchange for P34 billion in investment.
MGen’s SP New Energy Corp. (SPNEC) would lead the development of the Terra Solar project.
According to Pangilinan, the group already has contractors for the transmission requirements of the project, namely Chinese firm Fujian Engineering and Meralco Industrial Engineering Services Corporation.
“When phase one is energized, we need transmission. So that’s in the critical path because you cannot energize phase one if there’s no transmission,” he said.
SPNEC president and chief executive Emmanuel Rubio earlier said construction works would be done in two phases. The first phase, with a target capacity of 2,500 megawatts (MW) is expected to be finished by 2026. The second phase with a capacity of 1,000 MW is eyed for completion by 2027.
The development would also be boosted with a 4,000-MW hour energy storage system.
Pangilinan added that the current progress rate of the project was at 60 to 67 percent.
“By the end of September, it will be probably 80 to 90 percent,” he said.
Rubio and Pangilinan both said that the massive development could be seen from outer space once operational.
“We expect our strategic partnership will not only put the Philippines in the global spotlight, it will also thrust Meralco into the international stage as a leader in the renewable energy space, through its ownership of the world’s largest hybrid solar project,” Rubio said.
The Terra Solar project is also designed to power over 2.4 million Filipino households.
