MUTUAL BENEFIT Officials of Meralco PowerGen and of Security Bank seal the loan deals. From left:MGen expanding markets head Dan Neil;MGen CFO Rochel Gloria;MGreen president Jaime Azurin; Security Bank SVP Louie Maloles; and Security Bank VP Roberto Tejuco Jr. —MGREEN
MANILA, Philippines — The renewable energy arm of the Meralco group obtained P2.9 billion worth of loans to support solar photovoltaic projects in the provinces of Isabela and Nueva Ecija.
Greenergy for Global Inc. or GGI, a unit of MGen Renewable Energy Inc. (MGreen), secured P2.034 billion in financing from Security Banking Corp. to bankroll the construction of the 49-megawatt (MW) solar farm in Cordon, Isabela.
Greentech Solar Energy Inc. (GSEI), another MGreen unit, tapped a P791 million in funding also from Security Bank for its 18.75-MW solar plant in Bongabon, Nueva Ecija.
READ: MGen allots P18B to expand RE portfolio
Both financing facilities from Security Bank have a 15-year term.
“This loan will facilitate growth, foster innovation, and create opportunities that will benefit many. It is a stepping stone toward achieving our collective goals and realizing our aspirations” MGreen president and CEO Jaime Azurin said in a joint statement on Friday.
Security Bank senior vice president Louie Maloles said this development allowed the lender “to pursue the industry’s drive toward sustainable financing as well as their commitment for better banking.”
Solar projects to start operation by Q1 2025
The two solar projects are scheduled to begin commercial operation by the first quarter of 2025.
According to MGreen, both projects play a strategic role in its goal of expanding its solar power capacity and contributing significantly to the nation’s renewable energy goals.
Last February, MGreen awarded engineering, procurement and construction contracts covering the two projects to Sumec Complete Equipment and Engineering Co. Ltd.
GGI and GSEI, the two MGreen subsidiaries, are among the power plant developers that have clinched off take agreements through the Department of Energy’s second Green Energy Auction Program.
MGreen, itself a unit of Manila Electric Co.’s power generation arm Meralco PowerGen Corp., has three operating solar plants in Luzon.
These include the 55-MW facility in San Miguel, Bulacan, which was developed with PowerSource Energy Holdings Corp.
Other projects in MGreen’s portfolio include Nuevo Solar Energy Corp.’s 68-MW solar farm in Currimao, Ilocos Norte, developed with Pasuquin Energy Holdings Inc., and PH Renewables Inc.’s 75-MW solar farm in Baras, Rizal developed with MitRenewables Power Corp.
MPower contract
Also, on Thursday, Meralco’s retail unit MPower renewed its contract to continue supplying clean energy to Laguna-based JX Metals Philippines Inc.
READ: MPower expanding renewable energy share in supply portfolio
Eddie John Adug, MPower senior assistant vice president and head of retail sales said in a statement JX Metals is the latest entity that would benefit from competitively priced RE supply in the coming years
JX Metals, engaged in the manufacturing of copper foil since 1998, has been a customer of MPower since 2013. The Japanese firm started sourcing electricity from renewable energy resources in 2022.
The manufacturer produces high-end treated roll copper foil and electro-deposited copper foil used for flexible and rigid copper-clad laminate printed circuit applications in its plant in Laguna Technopark.
The company services demand from the electronic industry in Southeast Asia, China, Korea, and Japan.
Aside from power supply, MPower provides other services to JX Metals through collaboration with Meralco subsidiaries including MServ, Meralco Power Academy, Radius, and Bayad.