MANILA, Philippines - The Department of Energy (DOE) has cleared sugar miller Roxas & Co. Inc.’s plan to construct a 50-megawatt (MW) solar project in Batangas.
In a statement, RCI said the DOE has entered into a renewable energy service contract (RESC) with wholly-owned RCI unit Roxas Green Energy Corp. (RGEC) for the establishment of a 50-MW solar power plant in Nasugbu, Batangas.
The contract is pursuant to DOEs’ mandate to explore and promote the development of renewal energy throughout the Philippines.
The RESC was signed by DOE Assistant Secretary Jose Raymund A. Acol and RCI EVP and CFO Armando B. Escobar, who is concurrently RGEC’s director and treasurer.
RGEC intends to operate the facility by the first quarter of 2016.
In April, RCI received the green light to incorporate a new company to operate a 30 to 50 MW solar power project in Batangas, setting aside about P500 million for capital.
The solar project is estimated at a cost of P1.7 billion, RCI said.
RCI is also pursuing a 30-MW cogeneration facility also in Nasugbu, under another subsidiary, Roxas Holdings Inc. (RHI).
It partnered with Global Business Power Corp. (GBPC), the power generation arm of GT Capital Holdings Inc., for the Batangas cogeneration facility.
RHI will also construct 40-MW cogeneration facility near its Central Azucarera de la Carlota plant in Negros Occidental, which will be completed by the third quarter of 2017 under the feed-in tariff (FIT) scheme.
FIT is a set of incentives given to power developers to invest in the renewable energy sector.
Under the FIT mechanism, the DOE has put in place an allocation target of 250 MW and a FIT rate of P6.63 per kilowatt hour (kwh).