Despite facing obstacles in its planned 280-megawatt (MW) solar project in Nueva Ecija due to transmission limitations, Pangilinan-led SP New Energy Corp. (SPNEC) remains dedicated to the project's development. However, the company may shift the project's location to an alternative site with more favorable transmission lines.
In an interview, SPNEC's President and CEO Emmanuel V. Rubio confirmed that the company is presently looking for possible sites as part of its strategy to move forward with the solar project under the first Green Energy Auction round (GEA-1).
“We have to look for a new place since I don’t know when that transmission line is going to be available,” Rubio explained, highlighting the uncertainty surrounding the infrastructure timeline.
Last month, SPNEC formally requested the Department of Energy (DOE) to withdraw its notice of award under GEA-1 for the Sta. Rosa Solar project due to transmission challenges beyond the company’s control.
The Sta. Rosa Solar Project was among the initial renewable energy initiatives expected to benefit from the GEA program. SPNEC had secured a winning bid rate of P3.67 per kilowatt-hour, with an original target delivery date of 25 December 2025.
“We are willing to replace the capacity in other areas where we can evacuate the energy. But we will ask the DOE if they can consider a level of repricing, and we are open to accepting some concessions on the penalties,” Rubio added.
The GEA program, first held in June 2022, attracted bids for 1,996.93 MW of renewable energy projects, of which 1,490.38 MW were ground-mounted, 374 MW were onshore wind, 99.15 MW were hydro, and 3.4 MW were biomass.
Under the GEA setup, renewable energy producers compete for incentivized fixed power rates by offering prices at or below the reserve rates set by the Energy Regulatory Commission.