SP New Energy Corp. (SPNEC) said it is seeking investors for Terra Solar Philippines, Inc. to secure additional financing for its P200-billion solar power project.
“Right now, SPNEC owns 100% of Terra Solar. We will have to get more investors into the Terra Solar project to help us in financing the project… It costs us about P200 billion to implement the project in full,” SPNEC Chairman and Chief Executive Officer Manuel V. Pangilinan told reporters last week.
Foreign investors will likely come in for an up to 40% equity stake in Terra Solar, Mr. Pangilinan said.
“We organized a team dedicated to the execution of the project. So, there’s all the financial and investment program that we satisfy. So, we’re down to the execution of the project,” he said.
“Of course, [there are] risks. So, there’s a dedicated team that is fully devoted to getting the Terra Solar facilities done,” he added.
The Terra Solar project in Nueva Ecija and Bulacan consists of 3,500 megawatts of solar panels and 4,000 megawatt hours of battery storage system. It is expected to generate more than five billion kilowatt hours of electricity per year.
The first phase of the project is scheduled to be delivered by the first quarter of 2026.
The company started the site clearing activities in January. It has secured over 3,000 hectares for the project, most of which have already been converted to industrial use.
SPNEC is now controlled by the MVP group, through MGen Renewable Energy, Inc., the renewable energy development arm of Meralco PowerGen Corp., a wholly owned subsidiary of the Manila Electric Co. (Meralco.).
SPNEC had acquired 100% of shares of Prime Infrastructure, Inc. in Terra Solar last year for P6 billion.
Meanwhile, Meralco has allocated about P40 billion for its capital expenditure budget for this year, which includes P24 billion for distribution utilities and P4 billion for power distribution.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
