August 15, 2024 | 12:00am
MANILA, Philippines — SP New Energy Corp. (SPNEC) of tycoon Manuel V. Pangilinan is planning to pull the plug on a solar project secured in 2022 as transmission woes spark a strategic rethink.
In a disclosure, the company said its board of directors ratified the request for termination sent to the Department of Energy (DOE) of its notice of award covering the Santa Rosa project in Nueva Ecija.
SPNEC, formerly Solar Philippines Nueva Ecija Corp., bagged the 280-megawatt (MW) project during the government’s first green energy auction round (GEA-1).
“Our request for termination of SPNEC’s GEA-1 award with the DOE stems from the challenges faced by this project, particularly transmission constraints, which are beyond our control,” SPNEC president and CEO Emmanuel Rubio told reporters.
The DOE, meanwhile, said the developer “claimed force majeure,” noting that the decision on the matter is still under deliberation.
Energy Assistant Secretary Mylene Capongcol said the DOE and the GEA committee are now “evaluating the letter or request of SPNEC.”
While the request is pending approval, Rubio said the company remains compliant with the parameters established in GEA-1 guidelines.
“Having said that, SPNEC remains a committed partner of the government’s thrust to increase the share of RE (renewable energy) in the overall energy mix of the country,” he said.
Under the Philippine Energy Plan, the government wants to achieve a 35 percent RE share by 2030, 50 percent by 2040 and over 50 percent by 2050.
The official said SPNEC would continue “to assess and develop opportunities while we progress with the execution of our existing projects.”
The company, through Terra Solar Philippines Inc., is developing a massive solar farm, which will consist of 3,500 MW of solar panels and 4,000 MW of battery storage.
The company wants to welcome foreign investors as early as October to help finance the P200-billion Terra Solar development, which straddles the provinces of Nueva Ecija and Bulacan.
As of mid-July, SPNEC had achieved 54 percent in overall development, citing key progress in land control, permitting, and interconnection development.
The project is scheduled for completion in phases with the first phase by 2026 and the second phase by 2027.
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