Citicore to boost renewable energy spending
After spending P35 billion last year, CREC President Oliver Tan said the company’s pipeline of projects, particularly in solar power development, will demand even greater funding this year.
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After spending P35 billion last year, CREC President Oliver Tan said the company’s pipeline of projects, particularly in solar power development, will demand even greater funding this year.
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Listed Citicore Renewable Energy Corp. (CREC) is gearing up to increase its capital expenditures (capex) this year to support the growth of its clean energy portfolio.
After spending P35 billion last year, CREC President Oliver Tan said the company’s pipeline of projects, particularly in solar power development, will demand even greater funding this year. However, the exact budget remains under deliberation and awaits approval from the company’s Board of Directors.
“We’ll most likely do a shelf registration to streamline future fundraising,” Tan told reporters, adding that the company plans to tap both capital markets and debt instruments within the first half to meet its capex needs.
According to Tan, CREC is now on track to energize several solar power projects, including four projects in Tuy, Batangas; one in Arayat, Pampanga; two in Pangasinan; and two in Pagbilao, Quezon. Together, these initiatives are projected to contribute approximately 1 gigawatt (GW) of RE capacity.
A significant portion of these projects falls under the government’s Green Energy Auction (GEA) 2 program, which seeks to boost the country’s RE output.
The energization schedule will begin in April, with 200 megawatts (MW) of solar capacity in Batangas set to come online. The remaining projects, totaling 800 MW, are expected to be operational between July and September.
By the end of the year, CREC anticipates having nearly 1.2 GW of solar power capacity up and running.
“It’s exciting. We’ll end the year with almost 1.2 GW of capacity. Not only that, but we’re also rolling out the second GW pipeline this year,” Tan said.
Earlier this month, CREC announced that Indonesian state-owned subsidiary PT Pertamina Power Indonesia (Pertamina NRE) acquired 20 percent of its stake to mark its entry into the local RE market.
Through a share subscription agreement, Pertamina NRE purchased 2.23 billion common shares of CREC at P3 per share, valuing the deal at approximately P6.7 billion or $115 million.
The partnership allows Pertamina NRE to leverage CREC’s expertise in RE project development and construction. In turn, CREC gains opportunities to collaborate on projects in Indonesia, broadening its regional footprint.
