SPNEC in RE contract for Nueva Ecija solar farm

Solar Philippines Nueva Ecija Corp. (SPNEC) has bagged its first power supply deal over a month since its listing to the local bourse.

In a statement, SPNEC announced that it has signed a renewable power supply agreement with Angeles Electric Corp. (AEC), the third-largest distribution utility in Luzon.

The solar company is expected to supply AEC with approximately 97.8 megawatts per hour daily between 6 a.m. and 6 p.m. over the next 10 years, the power for which would come from SPNEC’s Nueva Ecija solar farm.

“The contracting of the first phase of our solar farm shows that renewable energy (RE) in the Philippines is a supply-constrained market. This reinforces our drive to expand SPNEC’s capacity to meet the country’s great demand for renewable energy,” Solar Philippines founder Leandro Leviste said.

Revenue base

SPNEC said the supply agreement would provide it with a base of contracted revenues while the rest of its energy supply may be sold to the spot market or other off-takers.

The deal was the result of AEC’s competitive selection process wherein SPNEC emerged as the most competitive among five bidders.The supply deal comes just as SPNEC is finalizing plans for an asset-for-share swap with parent firm Solar Philippines. Once complete, SPNEC would acquire over 20 solar project companies including 10 gigawatts of developments.

Largest in Asean

Touted as the developer of what is planned to be the largest solar project in Southeast Asia, SPNEC is the first pure-play solar company to list on the Philippine Stock Exchange.

SPNEC was the Philippine Stock Exchange’s best performing initial public offering of 2021, closing the year up 28 percent on the back of strong interest in green energy projects.

Its parent firm, Solar Philippines, has developed a pipeline of over 10 gigawatts of solar projects. These include 63 megawatts in Batangas in partnership with Korea Electric Power Corp., which is already operational; 340 MW in Tarlac, Batangas and Cavite together with Razon Group’s Prime Infra, some of which are already operating; and several projects with SM malls. INQ