Raslag allots P3.6B for solar power projects in Pampanga
BY LENIE LECTURA – FEBRUARY 24, 2022
from Business Mirror
Nepomuceno-led Raslag Corp. is spending P3.6 billion to finance two more solar power projects that would enhance its business and maximize the potential for clean energy in the country.
Raslag has commenced work for the development of the 35.2 megawatt peak (MWp) RASLAG-4 solar plant and has acquired the site for the 60 MWp RASLAG-5 solar plant, both in Pampanga. RASLAG IV will cost P1.5 billion while the project cost for RASLAG V is estimated at P2.1 billion.
The company previously announced that commercial operation of the 18.011-megawatt peak (MWp) RASLAG-3 in Mabalacat and Magalang, Pampanga, is scheduled in May this year.
These solar power plants are strategically located to harness the potential of Central Luzon for large, utility-scale solar projects. It said that this region is an ideal site for solar energy development considering its vast and flat terrains, stable transmission backbone, economic growth, and high demand for energy.
“With the boom of RE (renewable energy) demand in the country, Raslag is aiming to be a leader in solar energy development with a project pipeline that will boost its generation capacity nearly six-fold within five year and more than 10 times within 10 years.
In the long run, the company aims to put up multiple RE projects in various locations and deploy energy technologies that will enhance its business and maximize the potential for clean energy in the country,” it said.
Raslag is led by Engr. Peter Nepomuceno, the patriarch of the Nepomuceno Group of Companies of Angeles City, who built Angeles Electric Corporation into one of the largest power distributors in Luzon.
Nepomuceno and his team are now working on transforming RASLAG into a leading player in the RE industry by providing reliable yet cost-effective renewable energy to its customers through high quality solar power projects.
RE sources have contributed a 21.2-percent share in the country’s total power generation in 2020, the Department of Energy (DOE) said. To maximize the potential and advantages of RE, the government is targeting to increase its share in the Philippine energy mix to 35 percent by 2030 and 50 percent by 2040 through its updated National Renewable Energy Program (NREP).
This is aligned with the Clean Energy Scenario of the DOE’s latest Philippine Energy Plan latest where the government intends to expand solar generation capacity by an additional 18,639 MW in 2021-2030 and by 12,923 MW more in 2031-2040 to work towards achieving the aspirational target of 32,590 MW of solar by the end of 2040.
To accelerate the development of RE projects in the Philippines, the DOE offers long-term purchase agreements to RE producers through the Feed-in-Tariff (FIT) System. This energy supply policy places a fixed tariff to be paid for electricity produced from each type of RE source over a fixed period not less than 12 years.
Raslag’s first two projects in Mexico, Pampanga achieved the most coveted solar FIT rates in 2015 and 2016. The 10.046 MWp RASLAG-1 was the second solar plant to be granted the first round solar FIT rate (FIT-1) of P9.68/kWh, while the 13.141 MWp RASLAG-2 was the first solar plant to be awarded the second round solar FIT rate (FIT-2) of P8.69/kWh. These incentives from the government provide Raslag with secure and steady cash flows for the next 15 years.
