Renewable energy company Solar Philippines Nueva Ecija Corp. said over the weekend its planned 10 gigawatts of solar projects will require capital spending of roughly P400 billion ($7 billion) and generate P60 billion in annual sales.
SPNEC chairman Leandro Leviste said in a news briefing the P60-billion annual revenues and $7-billion capital spending estimates were based on the industry standard cost of $700,000 per megawatt and P6 million in revenues per MW.
Leviste said SPNEC would invest P10 billion on the planned solar projects. They will also be partly funded by the ongoing P2.8-billion stock rights offering.
SPNEC’s joint venture partners will invest P60 billion, while the balance will be funded through project financing.
“As a project developer, our job is to consolidate land and permits so the projects can secure off-take and become construction-ready to enable the projects to raise financing to complete the capital expenditures with the help of partners,” Leviste said.
“If we execute successfully, then this SRO can catalyze an order of magnitude more in funding, for the benefit of SPNEC’s shareholders, its partners and other stakeholders,” he said.
Leviste said that after the rights offering, the company would conduct more equity offering through private placement to complete the P10-billion equity needed.
He said that under the plan, the company would offer up to 3 billion shares in private placement which would be sold predominantly to foreign institutions.
The shares will be issued from the proposed increased in the company’s authorized capital stock to 50 billion from 10 billion shares.
The increase in capital stock will also pave the way for the implementation of SPNEC’s property-for-share swap with parent Solar Philippines.
SPNEC’s share swap involves the issuance of 24.37 billion shares at P2.50 apiece in exchange for shares of Solar Philippines in over 20 companies.
These projects include more than 400 MW operating or under construction such as the 3.5-GW solar, 4.5-GWh battery Terra Solar project; the 1.8-GW solar, 1.8-GWh battery Batangas Baseload project; and the 1.8 GW of projects contracted under the Department of Energy’s Green Energy Auction.
SPNEC expects these projects to commence operations between 2025 and 2026 and would account for two-thirds of the total contracted renewable energy capacity of the Philippines.