ACEN Corp. of the Ayala Group said Thursday it paid out P2 billion of the total P4.99 billion for the subscription of a 26.1-percent interest in Santa Cruz Solar Energy Inc., developer of the 280-megawatt San Marcelino solar power project in Zambales province.
ACEN said in a disclosure it signed a subscription agreement with Santa Cruz Solar Energy Inc. for its subscription to 49,997,367 Common A Shares and 449,976,319 Redeemable Preferred A Shares of SCSEI, for a total subscription price of P4.99 billion.
“The subscription will be used by SCSEI to fund continuing works for the construction of the San Marcelino solar energy power plant project [Phases 1 and 2],” the company said.
The first phase of the 500-MW solar project involves 280 MW which is expected to be operational by 2023. The second phase of 220 MW is expected to begin commercial operations by 2024, based on previous documents submitted to the Energy Regulatory Commission.
SCSEI asked the ERC for approval to connect the first phase of the power plant to the Luzon grid through an interim connection to Luzon grid through the 500 kV Heromasa-Castillejos line.
“This is the most convenient and economical connection that is feasible and available when the plant becomes operational in 2023, given that the NGCP’s target for completion of the 230kV Castillejos substation and related transmission facilities is set to 2024,” the company said in its application with the ERC.
The cost of constructing the interim connection facility is estimated at P1.644 billion, and the company plans to secure the services of a qualified engineering, procurement and construction company for the interim facility, once approved.
“By 2023, in time for the San Marcelino solar power project’s entry to the grid, the country’s power demand is projected to reach 18,211 MW, 13,125 MW of which will come from Luzon alone,” SCSEI said.
“The interim connection facility will ensure the earliest possible injection of capacity from the San Marcelino solar power plant project to the Luzon grid, thus enhancing the Luzon’s grid’s stability and reliability, without waiting energization of NGCP’s 230 kV Castillejos substation,” it said.
SCSEI contracted Meralco Industrial Engineering Services Corp. for the turnkey design and construction of the transmission line of the dedicated facility project, while it intends to engage NGCP for the operation and maintenance of the system.