Soleq, the solar power arm of Singapore-based Equis Funds Group Pte Ltd, is expanding its presence in the Philippines.
The company is investing $37.6 million in the 20-megawatt solar power project of Mirae Asia Energy Corp. in Ilocos Norte, according to regulatory documents.
The amount of financing secured is enough to complete the $51.9-million project and the needed Luzon grid connection that costs about $1.4 million, documents showed.
Mirae’s application for a grid link to its solar project said, “Soleq has obtained all internal approvals for the investment of up to $37.6 million in (Mirae) for the construction and delivery of the project, including the transmission line/connection asset.”
Soleq, an Asian solar utility business with a portfolio of 110 MW in solar projects in Thailand alone, has committed support for Mirae’s project through its affiliate, First Soleq Holdings Philippines Inc., which is a shareholder of Mirae.
“(Mirae) will use equity financing from FSPHI and a loan from Soleq to fund the project, including the transmission line project/connection asset,” Mirae said.
It may be recalled that Soleq earlier supported the P1-billion ($22 million) solar power project of Asian Greenergy Corp., a firm led by former Sen. Juan Miguel Zubiri, in Bukidnon. Soleq is expected to invest more in the Philippines.
According to Soleq’s official web site, “Soleq will enter markets with government sponsored feed-in tariffs for renewable energy projects,” but it will also explore grid and off-grid projects with developers that have secured highly rated off-takers.
Projects can be ground-mount or rooftop with capacities ranging from 2 MW to 200 MW and may be located in Singapore, Thailand, Malaysia and the Philippines, Soleq said.
For the Luzon Grid, the Department of Energy projects energy demand to increase by an average of 4.13 percent, from 7,969 MW in 2012 to 10,693 MW in 2020. This is seen increasing further to 16,477 MW in 2030.
The grid still needs 8,100 MW in capacity from base-load plants and 2,100 MW from peaking plants to meet the electricity demand and the required reserve margin of the grid.
Mirae has obtained regulatory approval to put up a transmission line connecting its 20-MW solar power plant in Barrangay Paguludan-Salindeg, Currimao, Ilocos Norte, to National Grid of the Philippines’s (NGCP) 69-kV Currimao substation.
In the application approved by the Energy Regulatory Commission (ERC), Mirae said the transmission line project would cost about P63.7 million ($1.4 million).
The contract for the connection asset was assigned to JC Electrofields Power System Inc. after bidding and selection process was conducted.
The scope of the contract includes engineering, designing, procurement, construction and installation of machinery, as well as the construction of transmission line to the substation. The funding will be sourced through equity and debt financing. The above-mentioned estimated cost is the agreed price between MAEC and JC Electrofields System Inc.
Since the development and construction of the transmission line will be solely funded by Mirae and its shareholders, the connection asset will only be used for the company’s project and will not affect the rates and services provided to other NGCP customers, Mirae said. Riza T. Olchondra