Tycoon Manuel V. Pangilinan is optimistic about building the “world’s largest solar project” in the Philippines. However, he acknowledged the need to collaborate with other investors to bring the project to fruition.
In an interview with reporters, Pangilinan said SP New Energy Corp., or SPNEC, intends to attract investors to Terra Solar Philippines Inc., the designated company to undertake the solar farm in Nueva Ecija and Bulacan provinces.
The farm will consist of 3,500 megawatts, or MW, of solar panels and a 4,000-megawatt-hour, or mWh, battery energy storage system.
“Right now, SPNEC owns 100 percent of Terra Solar. We will have to get new investors into the Terra Solar project company level to help us with the financing of the total project because the estimated cost is about P200 billion to implement the project in full,” he said.
Pangilinan said the company is now in the process of talking to potential investors, with the help of financial advisors
“Most likely foreign investors will come in for an up to 40% equity stake at the Terra Solar level,” he noted.
Timely completion
According to Pangilinan, SPNEC has mobilized a team specifically dedicated to executing the solar farm project and ensuring its timely completion in 2026.
In January, SPNEC started clearing the site in anticipation of building the project’s interconnection facilities with the National Grid Corporation of the Philippines. Over 5 million solar panels will also be installed to meet the construction timeline.
SPNEC has secured more than 3,000 hectares for its projects, mainly in Nueva Ecija and Bulacan. Most of these areas have been converted for industrial use.
The MVP Group now controls SPNEC through MGen Renewable Energy Inc., or MGreen, a completely owned subsidiary of Meralco PowerGen Corp., following a series of acquisitions.
MGreen recently increased its stake in the company from 50.53 percent to 55.96 percent by buying 2.17 billion shares of SPNEC from Solar Philippines Power Project Holdings Inc. for P2.5 billion, representing 4.34 percent.
Before this, MGreen had invested P15.9 billion for 15.7 billion common shares of SPNEC and 19.4 billion preferred shares.
