SPNEC, Angeles Electric sign power agreement

MANILA, Philippines — Solar Philippines Nueva Ecija Corp. (SPNEC) has signed a renewable power supply agreement with  Angeles Electric Corp. (AEC), the third largest distribution utility in Luzon.

The agreement will be effective for 10 years.

AEC awarded the PSA as the result of a competitive selection process (CSP) in support of the Department of Energy’s (DOE) Renewable Portfolio Standard program, with SPNEC emerging as the most competitive among five bidders.

Based on the terms published on the DOE website, SPNEC will supply AEC approximately 97.8 megawatt-hour (MWh) per day from 6am to 6pm.

This will provide SPNEC a base of contracted revenues, while being able to sell the rest of its energy to the spot market or other off-takers.

“The contracting of the first phase of our solar farm shows that renewable energy in the Philippines is a supply-constrained market. This reinforces our drive to expand SPNEC’s capacity to meet the country’s great demand for renewable energy,” Solar Philippines founder Leandro Leviste said.

The supply deal comes as SPNEC finalizes plans for an asset-for-share swap with its parent, Solar Philippines, which may enable SPNEC to acquire over 20 solar project companies, including over 10 gigawatts (GW) of developments.

These aim to support the DOE’s target to source 35 percent of the country’s energy from renewables by 2030, which would translate to demand for over 20 GW of solar power.

SPNEC debuted in the stock market in December with a P2.7 billion initial public offering.