SPNEC seeks repricing of NE solar contract

By Alena Mae S. Flores – September 10, 2024, 7:10 pm
from manilastandard.net

SP New Energy Corp. (SPNEC), a subsidiary of Meralco PowerGen Corp., is negotiating with the Department of Energy on relocating and repricing its contract for a 280-megawatt solar project in Nueva Ecija province under the Green Energy Auction Program 1.

SPNEC previously informed DOE of its intention to terminate its GEAP-1 contract relative to its Santa Rosa Nueva Ecija 2 Solar Power project, citing force majeure due to transmission issues.

The GEA, launched in 2022, is a market development support program introduced by the DOE to promote renewable energy as one of the country’s primary sources of energy through the transparent and competitive selection of RE facilities.

SPNEC unit Solar Philippines Nueva Ecija Corp. won under GEAP-1 with its offered rate of P3.67 per kilowatt-hour to construct the Santa Rosa project.

SPNEC and MGen president Emmanuel Rubio said they received a reply from the DOE on the termination request and were drafting a reply.

“We are looking for a legal basis really to stand firm. We are willing actually to replace the capacity in other areas where we can actually evacuate the energy. But we will ask DOE if they can consider a certain level of repricing and we are willing to accept some concessions on the penalties but not the bond,” Rubio said.

Rubio said SPNEC was looking at other project sites in Luzon “because I don’t know when that transmission line is going to be available. And then we are committed to that price.”

“We are looking at possible replacement of the same capacity but maybe different location,” he said.

MGen is the generation arm of Manila Electric Co.