MANILA, Philippines – The Department of Energy (DOE) has given listed energy player Basic Energy Corp. the green light to proceed with its 43-megawatt Cadiz 1 Solar Power Project in Negros Occidental province.
Basic Energy said the certificate of authority issued by the DOE means they can begin “critical development activities” such as getting permits from government agencies and local government units to jumpstart the solar project.
“It also enables the company to initiate procurement activities in preparation for the 25-year SEOC (Solar Energy Operating Contract) contract term,” the company said in a disclosure on Wednesday.
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Basic Energy will conduct a system impact study with grid operator National Grid Corporation of the Philippines to determine if the power grid can accommodate additional energy coming from the Cadiz solar project.
“This milestone reinforces our commitment to expanding renewable energy solutions in the Philippines. Basic Energy Corporation is eager to advance the Cadiz 1 Solar Power Project and will provide updates as it progresses,” said Basic Energy vice chair and CEO Oscar de Venecia Jr.
The issuance of the COA allows industry players to secure the necessary permits and tenure instruments to undertake a renewable energy project, according to the DOE’s revised Omnibus Guidelines Governing the Award and Administration of Renewable Energy Contracts.
Located in Cadiz, the Cadiz 1 Solar Power Project covers approximately 30 hectares.
“A preliminary assessment by an independent third-party firm estimates a peak generation capacity of at least 43 megawatts (MWp),” Basic Energy said.
This is the second COA that Basic Energy has received for its renewable projects in the pipeline.
Last week, the Energy department issued the COA for the listed power company’s 62-MW Mariveles Solar Power Project in Bataan province spanning approximately 72 hectares.
Basic Energy, which has business interests in various fields of renewable energy and alternative fuels, and oil and gas exploration and development, previously unveiled plans to develop around 500 MW of solar capacity over the next five years or through 2030.
Applications are pending for two of the solar projects with the DOE, while the company has yet to initiate the application process for the proposed Pangasinan project.
Basic Energy plans to invest around $760 million in three wind projects in Panay, Batangas and Ilocos Norte, with an aggregate capacity of 380 MW.