PetroGreen locks in funds for Isabela solar

Yuchengco-led PetroGreen Energy Corp. (PGEC) has secured up to P1.24 billion in financing for its solar project in Isabela, bringing the development closer to construction as both phases already have arrangements in place for their power output.

PGEC, through subsidiaries Rizal Green Energy Corp. (RGEC) and BKS Green Energy Corp. (BKS), said on Tuesday that it signed an Omnibus Loan and Security Agreement with Rizal Commercial Banking Corp. (RCBC) to partially finance the Limbauan Solar Power Project in San Pablo, Isabela.

“The Limbauan Solar Power Project represents another significant step in expanding PGEC’s renewable energy portfolio and supplying clean, sustainable electricity to the Luzon grid and local electric cooperatives,” PGEC Vice President for Corporate Services Atty. Arlan P. Profeta said.

The financing will support PGEC’s renewable energy portfolio expansion while helping provide additional clean power to local communities and industries.

“We are pleased to once again collaborate with RCBC, whose steadfast partnership continues to strengthen PGEC, through its subsidiaries RGEC and BKS, to deliver dependable and environmentally responsible power infrastructure for local communities and industries,” Profeta added.

Under the agreement, RCBC will serve as lender and accounts bank, while RCBC Capital Corp. will act as lead arranger. RCBC Trust Corp. will serve as facility agent and security trustee.

“Supporting clean energy projects like the Limbauan Solar Power Project aligns with RCBC’s core commitment to driving sustainable finance and accelerating the nation’s energy transition,” RCBC Institutional Banking Group Head Elizabeth E. Coronel said.

The ground-mounted facility will have a total capacity of about 40 megawatts direct current (MWDC), equivalent to 33 megawatts alternating current (MWAC). It will be developed in two phases, each supported by a separate power arrangement.

The first phase will have a capacity of 6.006 MWDC, or 5.013 MWAC, and is backed by a power supply agreement with Isabela II Electric Cooperative.

The larger second phase will have a capacity of 33.831 MWDC, or 28.160 MWAC. Its power output has been awarded a tariff under the Department of Energy’s second Green Energy Auction.