Meralco keen on hiking SPNEC stake

MANILA, Philippines — Power giant Manila Electric Co. (Meralco) is interested in increasing its investments in SP New Energy Corp. (SPNEC), drawn by the solar firm’s bright prospects in the green energy space.

“Yeah, sure. If it’s open, why not? It’s a good project,” said Meralco chairman and CEO Manuel V. Pangilinan when asked about the possibility of buying more shares in SPNEC, a company he also chairs.

The Meralco Group took control of the solar firm in December 2023 after acquiring a voting interest of 50.5 percent for P15.9 billion.

MGen Renewable Energy, a wholly owned subsidiary of Meralco PowerGen Corp., purchased an additional 2.17 billion shares, or 4.34 percent, of SPNEC in February, raising the group’s controlling stake to 55.96 percent.

SPNEC, through Terra Solar Philippines Inc., is constructing a massive solar farm straddling the provinces of Nueva Ecija and Bulacan, which is poised to become the largest of its kind in the world.

“It owns 100 percent of Terra Solar for now, right? It’s the largest single-site solar facility in the world, and the Philippines should be proud of that. It’s a very complex (and) huge undertaking,” Pangilinan noted.

The company is looking to welcome foreign investors within this year to help bankroll the P200-billion Terra Solar development.

The Meralco big boss earlier said SPNEC was willing to sell as much as 40 percent of Terra Solar to foreign investors, with the company keeping the remaining 60 percent.

Terra Solar, which is targeted for completion by 2027, has so far drawn interest from companies based in Japan, the United Kingdom, the Middle East and the United States.

SPNEC reported an attributable net income of P121 million in the first half, a turnaround from the P57.3 million net loss incurred in the same period last year.

Revenues surged to P717.5 million from P64 million on the back of a strong sale of electricity during the period.

The company, founded by businessman Leandro Leviste, is selling the electricity generated from its solar plant to customers through bilateral contracts or directly to the power spot market.