BASIC ENERGY Corp. has signed a joint venture (JV) agreement with Japanese company Renova, Inc. for the development of the 50-megawatt Mabini Wind Power Project in Batangas.

“Our collaboration underscores our commitment to fostering enduring relationships within the Philippine energy sector,” Basic Energy President and Chief Executive Officer Oscar L. de Venecia, Jr., said during the signing ceremony on Wednesday.

The two companies began with the installation of a 120-meter meteorological mast in Brgy. San Teodoro, Mabini in November 2022.

This was followed by the deployment of Light Detection and Ranging equipment in Brgy. Estrella, Mabini, in June 2023.

Basic Energy Chief Operating Officer Luisito V. Poblete said the project will likely require a total of approximately P4.5 billion, which is expected to be sourced from both local and international banks and financing institutions, in addition to contributions from both companies.

The Mabini wind power project covers 4,860 hectares in the Mabini Peninsula. The wind energy service contract (WESC) for the project was awarded by the Department of Energy to the company in 2021.

The WESC covers a 25-year term, comprising a five-year pre-development phase and an option for a 25-year extension. 

Renova develops and operates renewable power plants utilizing existing energy resources in each region and provides decarbonization solutions in Japan and overseas.

At the local bourse, shares in the company went down by P0.002 or 1.22% to close at P0.16 each. — Sheldeen Joy Talavera