The Department of Energy or DoE has awarded a solar energy operating contract or SEOC for the Apulid solar project in Paniqui, Tarlac to Alternergy Holdings Corp. through its subsidiary, Liberty Solar Energy Corp. or LSEC.

Alternergy said in a stock exchange disclosure on Thursday that the SEOC grants LSEC the exclusive rights to explore, develop and utilize solar energy resources in the area covering 144 hectares.

"Alternergy is excited to immediately pursue the development. Consistent with Alternergy's pioneering initiatives in the RE industry, the Apulid solar power project will be one of the first solar aqua voltaic projects in the country," said Vicente Perez, Alternergy chairman and LSEC president, in a statement.

The project will be a ground-mounted solar array that will be co-located and integrated with an operational aquaculture farm.

Auction withdrawal

Separately, Alternergy announced that LSEC's Board of Directors approved the withdrawal of the award for the Apulid solar project under the Green Energy Auction 2 or GEA2 program.

"The Apulid solar power project is one of the winning bids under GEA2. However, LSEC has opted not to pursue the GEA2 as an offtake mechanism. Based on our further analysis, there are other potential markets which could bring better value to the project while at the same time continue to contribute to achieving the government's renewable energy target," Perez explained.

The current setup of the Green Energy Auction or GEA has interested renewable energy producers competing for incentivized fixed power rates by offering prices that are lower than or equal to the Energy Regulatory Commission's set GEA reserve prices.

Significant investment

Alternergy has been investing a significant amount to expand its clean energy portfolio.

The company is planning to build up to 350 megawatts or MW of power projects in the next three to five years. These projects may be broken down into 33 MW for solar, 220 MW for onshore wind, and 50 MW for run-of-river hydro projects.