Solar Power Plant will see the light in Philippines after CREC and SMC Ink an Agreements on 153.5MW Solar Power Project in Bataan.
An important step towards the development of more renewable energy capacity, CITICORE Renewable Energy Corp (CREC) and SMC Global Light and Power Corp (SGLP) have sealed a joint venture and shareholders agreement on a solar power plant project in the Philippines to build, operate and develop a 153.5-megawatt solar power plant in Barangay Lucanin, Mariveles, Bataan.
Key Details of the Partnership
The agreement outlines a collaborative approach where both companies will engage in financing, construction, ownership, operation, and maintenance of the solar plant. Initially, CREC will hold a 49 percent stake, while SGLP will own 51 percent of the total issued and subscribed capital stock of a special purpose entity created for this project.
During the construction phase, CREC will subscribe to additional shares, resulting in an equal ownership split of 50 percent each.
This solar power plant partnership in the Philippines marks a crucial addition to CREC’s portfolio, aligning with its strategic goal of contributing approximately 1.0 gigawatt (GW) of ready-to-build or under-construction solar energy capacity annually over the next five years.
This initiative not only boosts CREC’s attributable solar energy capacity but also reinforces the commitment to sustainable energy development in the Philippines.
Scaling Solar Power Capacity in the Philippines
Though the current energy structure in the Philippines is changing, it remains unknown whether the country will leap onto a completely different energy path.
This possibility gets a lot closer with the launch of its recent ultra-ambitious programme to drastically increase its solar energy capacity, however. The climate crisis – with the near-term energy security worries it will bring with it – is the very same thing that could make that leap possible.
Their idealistic Philippine scheme for power sees renewables as 35 per cent of the energy mix in 2030 and rising to 50 per cent in 2040.The feed-in tariff and other incentives for renewable energy resource development are described in the Philippine Renewable Energy Act of 2008.
These include, among others, a plan to lower the lease rates of government land for renewable energy development, as well as income tax holidays and tax credits, and duty-free importation of required renewable energy equipment.
Many large-scale projects are already building up to support the goal of renewable energy pioneering.
Take this recently announced solar power plant in Barangay Lucanin, Mariveles, Bataan, being installed by CITICORE Renewable Energy Corp (CREC) and SMC Global Light and Power Corp (SGLPIt is one of the largest solar energy plants in the country, with a peak generation capacity of 153.5 megawatts, but is also illustrative of the investment needed to bring about a renewable energy future for the country.
On the commercial side, AC Energy announced plans to add 5,000 megawatts of renewable energy capacity by 2025: one-quarter of it through solar energy. And nearby, Solar Philippines has a raft of project sites springing up all over the archipelago to provide residents with cheaper, cleaner power.
Challenges and Solutions
The star is bright, but the route is not simple. There are problems of financing, of regulation and of modernization of infrastructure. Public-private partnerships of PPPs seem destined to play an important role here, by marrying strengths from the public and private sectors, and enabling the opinion of the state.
To conclude, solar future in the Philippines is promising. However, with the proper mix of policies, investment and innovations, the Philippines is in a sweet spot to catapult the country into a sustainable and resilient energy future.