MRC Allied secures clearance for Cebu solar farm

MANILA, Philippines - A unit of MRC Allied Inc. is set to start the development of a 60-megawatt (MW) solar farm in Naga City, Cebu after securing clearance from government.

In a disclosure to the Philippine Stock Exchange yesterday, MRC Allied said its wholly owned subsidiary Menlo Renewable Energy Corp. (MREC) has received solar energy service contract (SESC) from the Department of Energy (DOE).

The SESC covers the development of a 60-MW solar farm in Naga City.

This will be the group’s first venture in solar power development eyed under the government’s feed-in tariff (FIT), MREC president Dan Cantiller said in a phone interview.

“MREC was just formed recently and this will be our first solar project… and the FIT will be very beneficial to the project,” he said.

Cantiller said the company can work on the project as a whole or in phases, depending on the announcement of the next round of FIT for solar.

FIT is a set of incentives given to power developers to invest in the more expensive renewables sector.

The National Renewable Energy Board (NREB), the DOE’s advisory body tasked with the effective implementation of renewable energy projects in the country, is currently working on a proposal whether to continue with another round of FIT for solar.

The DOE is still finalizing the list of solar projects eligible for incentives under the second round of FIT solar.

Project cost has yet to be determined but it will not be far from the typical investments poured in by other solar developers, Cantiller said.

“We just got the SC from the DOE. We will be still looking for engineering, procurement and construction contractors to determine the project cost,” he said.

The project will be pre-development in two years and involves securing of licenses, environmental compliance certificate, non-coverage permit from National Commission on Indigenous Peoples and local government endorsements, the company official said.

The solar farm will be located within the 60-hectare industrial estate in Naga City, which is located 35 kilometers away from the Mactan International Airport. It is known as New Cebu Township One, which is registered with the Philippine Economic Zone Authority as a special economic zone.