Newly-listed Solar Philippines Nueva Ecija Corp. is in talks for a possible joint venture to develop the expansion of the largest solar project in Southeast Asia, a top executive said Wednesday.
The move is in support of SPNEC’s plan to develop the biggest solar project in Nueva Ecija, following its P2.7-billion initial public offering on Dec. 17. A part of the IPO proceeds will be used to construct the first 50 megawatts of the 500-MW project while the biggest part would be used to acquire land to expand beyond 500 MW.
“We are preparing an initial 1,000 hectares for a joint venture with a partner who can help turn this plan into a reality,” Solar Philippines founder Leandro Leviste said.
Leviste did not disclose the joint venture partner. Solar Philippines In 2020 announced a strategic shift towards sites and partners, focusing on creating value from the development of greenfield sites and bringing in other companies as partners once the project is de-risked.
SPNEC is initially limited by the power demand of Central Luzon, but the development of around 60 kilometers of transmission to Bulacan would enable SPNEC to deliver more power directly to the Greater Manila Area.
The company said the expansion potential is one of the reasons it prioritized the project and pursued the IPO of SPNEC.
“This project’s scale is both its advantage and disadvantage. Unlike 100 MW projects located next to existing transmission, this one will need to be at gigawatt-scale to justify the development of new transmission, which is why others have not sought to develop in this area,” Leviste said.
“This is a bet on the demand for large-scale solar, and if such demand does come, this project can become larger than all the solar projects to date in the Philippines combined,” he said.
These developments are in response to the Department of Energy’s increase of the Renewable Portfolio Standard target to 35 percent of the country’s energy that would need to be sourced from renewable energy by 2030.
Data from the Department of Energy showed that as of December 2020, the Philippines had total operating grid-connected solar capacity of 1,021 MW.