SPNEC wants to be relieved of green power project
SP New Energy Corp. (SPNEC) of billionaire Manuel Pangilinan has asked the government to terminate the a contract it bagged in 2022 for a green energy project in Sta. Rosa, Laguna.
In a disclosure, the company said its board of directors approved the ratification of SPNEC’s request for termination sent to the Department of Energy (DOE) related to a First Green Energy Auction Round (GEA-1) Notice of Award issued to the firm.
This covers the 280-megawatts (MW) Sta. Rosa Nueva Ecija 2 of Solar Philippines Nueva Ecija Corp.
SPNEC president and chief executive Emmanuel Rubio said they were prompted to make this decision due to “challenges faced by this project.”
“Particularly on transmission constraints, which is beyond our control,” the official said in a message to reporters.
Rubio said the request is still up for the DOE’s approval.
“SPNEC remains a committed partner of the government’s thrust to increase the share of RE (renewable energy) in the overall energy mix of the country, as we continue to assess and develop opportunities while we progress with the execution of our existing projects,” he added.
Meanwhile, the DOE said the group cited “force majeure” as the reason for the request.
Mylene Capongcol, director of the Renewable Energy Management Bureau of the DOE, said the request was still under evaluation.
Other renewable energy contracts that subsidiearies of Solar Philippines, SPNEC’s parent company, secured under the GEA-1 include the 200-MW Concepcion Tarlac 2 of Solar Philippines Commercial Rooftop Projects Inc. (SPCRPI), 450-MW Tayabas solar power of SPCRPI, 30-MW Calatagan wind power of Solar Philippines Calatagan Corp., 300-MW Kananga-Ormoc solar power of Solar Philippines Visayas Corp., and 120-MW General Santos solar power of SPCRPI.
The Green Energy Auction Program seeks to accelerate the growth of renewable energy capacity in the local market, and eventually hit the government’s target of increasing the share of RE projects in the power mix to 50 percent by 2040 from the current 22 percent.
Last month, Pangilinan said the group may soon pick foreign investors to help finance the P200-billion Terra Solar project in Nueva Ecija and Bulacan.
SPNEC, which serves as Meralco PowerGen Corp.’s listed renewable energy vehicle, bought Terra Solar assets for P6 billion from Prime Infrastructure Inc. in December 2023.
Rubio earlier said that the massive development, envisioned to become the world’s largest solar park with a 3,500-MW capacity and a 4,000-MW hour energy storage system, has been making headway with the completion rate now at 54 percent following key progress in land control.
