Cleantech plans to put up $1-B solar power projects
CLEANTECH Global Renewables Inc. is set to spend up to $1 billion on solar power projects to complement its hydroelectric power pipeline.
Company president and CEO Salvador Antonio Castro Jr. said the company wanted to build up solar capacity to 500 megawatts (MW) over the next five years. This will entail investments of $750 million to $1 billion, he said.
The renewable energy (R.E.) developer also has a pipeline of hydroelectric power projects worth $400 million, according to Castro.
Cleantech is keen on applying for feed-in-tariff (FIT) incentives for its solar power plants, he said.
Cleantech has completed the first phase of its solar power plant rollout. “We’ve developed a 15 MW solar farm in San Ildefonso, Bulacan, under the SPV (special project vehicle) name Bulacan Solar Energy Corp. (BSEC),” Castro said.
The project, which can be expanded with another 35 MW, is in a franchise area of Manila Electric Co. and cost about $30 million.
Article continues after this advertisementThe BSEC solar farm is in a 25-hectare property in Barangays Pasong Bangkal and Casalat, San Ildefonso, Bulacan.
Article continues after this advertisementThe solar power plant in San Ildefonso was energized on March 12 and operated successfully for three days, which is a requirement for a solar power plant to be considered for FIT incentives, Castro said.
He expressed confidence the project would be considered for FIT incentives since the deadline for solar was March 15.
Castro said firm plans for solar power include work on a service contract for another 85 MW in Bulacan and another 100 MW in Pangasinan.
For the 85-MW and 100-MW power plant projects to be developed, Castro said the company was open to bilateral contracts but being able to operate in the spot market with FIT incentives would be a more viable business model.
The regulator-approved FIT rates are P6.63 per kilowatt-hour (kWh) for biomass, P5.90 per kWh for hydro, P8.53 per kWh for first phase of wind and P7.40 per kWh for second phase of wind, and P9.68 per kWh for first phase of solar, P8.69 per kWh for the second phase.
