SPNEC invests ₱6 billion in Terra Solar
By Lenie Lectura – October 11, 2024
from Business Mirror
SP New Energy Corp. (SPNEC) said Thursday its board has approved an additional subscription to Terra Solar Philippines Inc. (TSPI) shares for P6.033 billion.
“The additional subscription of SPNEC in TSPI is to support its application to the SEC [Securities and Exchange Commission] for the increase in authorized capital stock in preparation for the incoming investor and the future funding needed for the Terra Solar project, which include payments for engineering, procurement, and construction (EPC) contractors,” SPNEC President Emmanuel Rubio told reporters in an interview.
SPNEC is currently developing the “world’s largest solar project” valued at around P200 billion. The project will consist of 3,500-megawatt peak (MWp) of solar power plant and a 4,000-MW hour (MWh) battery energy storage system (BESS). It is expected to generate more than 5 billion kilowatt-hours of electricity per year. The first phase of the project is scheduled to be delivered by 2026, while Phase 2 is targeted for 2027.
Also, the board approved additional subscription to Terra Nueva Inc. (TNI) shares in the amount of P2,902,000,000.
“Meanwhile the additional subscription in TNI is set aside for land and right-of-way acquisition, land conversion cost, among others,” added Rubio.
Moreover, the board of directors of SPNEC were informed that for the 3,500 MWp and 4,500 MWh BESS project of Terra Solar, the project site will be owned by TNI, and TSPI and TNI will enter into a lease agreement covering the same. SPNEC is now controlled by MGreen, a wholly-owned subsidiary of Meralco Powergen Corp. (MGen), which in turn is a wholly-owned subsidiary of Meralco, whose largest shareholder is the Metro Pacific Investments Corp.
London-based investment house Actis signed last month an investment deal with SPNEC, which owns 60 percent of TSPI.
Actis has been chosen to be TSPI’s strategic partner, injecting $600 million into the partnership, representing a 40-percent equity in TSPI.
