Meralco unit buys stake in PFBSI

By Lorenz S. Marasigan – January 8, 2021
from Business Mirror

The power generation arm of Manila Electric Co. (Meralco) said on Thursday it spent P158.95 million to acquire a 20-percent shareholding in PowerSource First Bulacan Solar Inc. (PFBSI), a company that is currently constructing a 50-megawatt (MW) solar facility.

Meralco PowerGen Corp. (MGen), through MGreen, acquired the 20-percent share of Sunseap Philippines Solar Holdings Pte Ltd. in PFBSI. With the transaction, MGreen now holds a controlling 60-percent stake in PFBSI. Powersource Energy Holdings Corp. continues to hold 36 percent of the company’s shares and Sunseap with 4 percent.

“The acquisition is in line with MGen’s goal to diversify and increase investment in the renewable energy sector,” a Meralco disclosure read.

PFBSI started developing a 50MW solar farm on a 72-hectare land in December 2019. The P4.25-billion project is expected to start commercial operations sometime in the first quarter this year. Under a power supply agreement PFBSI will sell energy to Meralco.

“The acquisition increases the attributable and net sellable capacity of MGreen, which is in-line with MGen’s goal of building a portfolio of 1,000MW renewable energy projects in the next 5 to 7 years,” the Meralco disclosure read.

MGreen targets around 1,000MW of renewable energy projects over the next five to seven years. The focus is on the development of a portfolio of utility scale solar, wind and hydro-power projects to supply Luzon grid and electricity consumers with competitive tariff.