Listed Basic Energy Corp. (BEC), led by businessman Ramon Villavicencio, is pouring nearly P1 billion into its renewable energy pipeline this year, ramping up spending as its flagship Cadiz solar project nears construction and the company shifts from project planning to execution.

BEC president and chief executive officer Oscar Carey L. de Venecia Jr. said the company expects to accelerate during the remainder of the year, with most of the capital allocated to its equity contribution in the Cadiz solar project and the balance supporting other developments in its renewable portfolio.

“For the remainder of this year, we expect to spend close to P1 billion, as the funding will mainly go to the Cadiz and Mabini project. That will cover our equity participation there, while the rest will be allocated mostly to pre-development activities,” De Venecia told reporters on the sidelines of the company’s annual stockholders’ meeting.

Returned to profitability

The spending plan comes as BEC advances several renewable projects after returning to profitability last year.

De Venecia said the 54.26-megawatt-peak (MWp) Cadiz 1 Solar Power Plant in Negros Occidental is now the company’s most advanced project.

The project has secured a Solar Energy Operating Contract from the Department of Energy and an offtake agreement under the fourth Green Energy Auction Program, while project financing is already in advanced negotiations with prospective lenders.

The engineering, procurement, and construction (EPC) contract has also been awarded, pre-construction activities have started, and most technical and grid studies have been completed, leaving financial close as the final major milestone before full construction.

“We’re just going to do the closing of the project finance, then we are going to move. Na-identify na yung EPC. Most of the permits and everything are in place. So as soon as we close the project finance, we will hit the ground running,” he said.

Advancing the rest of its renewable pipeline

BEC is also advancing the rest of its renewable pipeline. Its 62.5-MWp Mariveles Solar Power Project in Bataan remains in discussions with prospective offtakers, while the 49.99-MW Mabini Wind Power Project in Batangas—a 50-50 joint venture with Renova Inc.—has entered the development stage after securing the government’s confirmation of commerciality.

The company is also progressing the San Carlos floating solar project, while the Bolinao solar project continues to address grid connection requirements, and its geothermal venture remains in the exploration stage.

Although the company returned to profitability last year, he said its renewable projects are not expected to contribute to earnings until they come online.

Cadiz, the first project slated for commercial operations, is expected to begin operating as early as

January or February next year.

Nonetheless, De Venecia said BEC remains committed to building a one-gigawatt renewable energy portfolio by 2030, evenly split between solar and wind.