SPNEC, AEC ink power supply deal

BY LENIE LECTURA – FEBRUARY 7, 2022
from Business Mirror

Solar Philippines Nueva Ecija Corp. (SPNEC) has bagged the power contract to supply Angeles Electric Corp. (AEC), the third largest distribution utility in Luzon, for 10 years.

Under the signed Renewable Power Supply Agreement (PSA), SPNEC will provide approximately 97.8 megawatt hour (MWh) per day to AEC from 6 a.m. to 6 p.m. The power will be sourced from SPNEC’s Nueva Ecija solar farm.

This will provide SPNEC a base of contracted revenues, while being able to sell the rest of its energy to the spot market or other off-takers.

The PSA was concluded via a Competitive Selection Process (CSP) in support of Department of Energy’s (DOE) Renewable Portfolio Standard program, with SPNEC emerging as the most competitive among five bidders.

“We wish to thank Angeles Electric for conducting a very professional CSP that will benefit the consumers of Angeles City. We’re grateful for this opportunity to work with Angeles Electric, a pioneer of the solar industry in the Philippines,” Solar Philippines founder Leandro Leviste said.

“The contracting of the first phase of our solar farm shows that renewable energy in the Philippines is a supply-constrained market. This reinforces our drive to expand SPNEC’s capacity to meet the country’s great demand for renewable energy,” he added. The supply deal comes as SPNEC is finalizing plans for an asset-for-share swap with its parent, Solar Philippines, which may enable SPNEC to acquire over 20 solar project companies, including over 10 gigawatts  (GW) of developments, according to DOE figures. These aim to support the DOE’s target to source 35 percent of the country’s energy from renewables by 2030, which would translate to demand for over 20 GW of solar power.