Prime Infra sets EPC auction for P200-B solar project
By Myrna M. Velasco – November 20, 2022, 8:30 PM
from Manila Bulletin
Razon-led Prime Infrastructure Capital Inc. has started its tendering process for the engagement of an engineering, procurement and construction (EPC) contractor for its P200-billion Terra Solar farm project being targeted for commercial streaming starting 2026.
“We are currently in the process of identifying EPC contractors for this project. The COD (commercial operations date) is essentially 2026 and 2027, therefore, we have sufficient time to optimize EPC acquisition per selection phase,” said Janssen dela Cruz, market sector lead for Power at Prime Infra.
The Terra Solar project sets the development of utility-scale solar farm with up to 3,500 megawatts of capacity to be coupled with 4,000 to 4,500-megawatt hours (MWh) of battery storage.
Once it reaches commercial operations, the renewable energy-based electricity generating asset will be supplying 850MW of mid-merit capacity to power utility giant Manila Electric Company.
When asked if the Razon group will be tapping a foreign partner for that mammoth renewable energy (RE) project, Prime Infra President and CEO Guillaume Lucci simply asserted that “this is premature to answer at this time. In due time, we will let you know what the project structure is for Terra Solar.”
For project funding, Lucci emphasized that beyond the equity to be injected by Prime Infra, the company’s proceeds from its planned initial public offering (IPO) next year will be funneled substantially into advancing the Terra Solar venture.
In terms of land banking for the solar farm installations, Dela Cruz indicated primary sites in Nueva Ecija, Zambales, Bulacan, Tarlac and Cavite. “We are currently optimizing these land areas so we can fully utilize our land bank for the 3,000 megawatts,” he said.
He said they have identified sufficient land to essentially address the needs, including an extra space to ensure panels are eventually distributed for maintenance purposes.
The capacity to be supplied by Terra Solar to Meralco will form part of the latter’s compliance to the mandate of the Renewable Portfolio Standards (RPS) policy instituted under the Renewable Energy Act, which primarily requires distribution utilities to source prescribed percentage of their supply from RE-generated capacities.
As stated in its 20-year power supply agreement (PSA) with Meralco, Terra Solar will need to deliver the initial 600MW capacity by February 26, 2026 and the balance of 250MW to be fed into the utility firm’s network by February 26, 2027 at a levelized cost of electricity (LCOE) at P5.80 per kWh.
If generated capacity from the Terra Solar facilities won’t be available, Prime Infra will need to provide replacement power that shall sustain the mid-merit supply portfolio of Meralco on those particular timeframes.
