Raslag’s solar power plant seen generating P214.5M

BY LENIE LECTURA – JULY 19, 2022
from Business Mirror

The third solar power project of the listed renewable energy (RE) firm of the Nepomuceno Group of Companies is expected to rake in P214.5 million in the first two years of its operation after the plant went online this month.

Raslag 3 is an 18 megawatt (MW) is initially being offered to the Wholesale Electricity Spot Market (WESM) as a merchant plant but will eventually venture into offering renewable power supply to distribution utilities and electric cooperatives. This is in compliance with the Renewable Portfolio Standards and for the Green Energy Auction Program.

“Raslag’s 18.011MWp plant energization earmarks the additional revenues for the company of about P215 million for the first two years of its operation. Offering its generation to WESM as a merchant plant, Raslag will capitalize on the uptrend of WESM prices thus far to push its financial figures higher than expected,” Raslag Corp. said on Tuesday.

Raslag 3 is expected to generate 13.5 gigawatt-hours (GWh) and 27.0 GWh in 2023. It can potentially contribute revenues of around P71.6 million in 2022 and P142. 9 million in 2023, assuming an average WESM Settlement Price of P5.30/kWh.

It doubles the company’s solar generating capacity to 41.198 MW.  The two other solar projects are Raslag-1 (10.046MW) and Raslag-2 (13.141MW).  Both enjoy a feed-in-tariff (FIT) rate of P9.68/kWh and P8.69/kWh, respectively. Said FIT rates have an annual escalation based on inflation and foreign exchange rates and guaranteed for 20 years from commercial operations.

The output of Raslag 3 is being injected into the grid via an interim connection to the 69kV Mexico-Clark Line 1 of the National Grid Corporation of the Philippines (NGCP). The connection will then be transferred to the 69kV Clark-Mabiga Line 1 once the said NGCP line is completed.

Raslag 1 and 2 are in Mexico, Pampanga while Raslag 3 is in Mabalacat, Pampanga.

The company has commenced work on the development of the 35.2-MW Raslag-4 solar plant and has acquired the site for the 60 MW Raslag-5 solar plant, both in Pampanga.

Raslag-4 is estimated to cost P1.5 billion and is targeted to commence construction in the second quarter of 2023 with completion eyed in March 2024.

For the P2.1-billion Raslag-5, construction is expected to commence in the second quarter of 2024 with completion and commercial commissioning in March 2025.

The company made its debut on the Philippine Stock Exchange in June. It raised P700 million after it sold 350 million common shares at P2 per share.