MRC Allied diversifies into power

MANILA, Philippines – MRC Allied Inc. is diversifying into the power sector as it looks to invest in various renewable energy (RE) projects.

In a disclosure to the stock exchange yesterday, MRC said its board approved the increase in authorized capital stock from P1.5 billion to P5 billion, paving the way for “the acquisition of renewable facilities through its own or its subsidiary” and the change in corporate name to MRC Inc.

This signifies MRC’s diversification into the energy sector, MRC Allied corporate secretary JV Soliven said in a phone interview with The STAR.

“MRC is diversifying into energy but it will still retain its core business as a real estate company,” he said.

The company sees RE developments as viable investments amid the push for greeener power projects and for the country to reduce its reliance on coal power plants, Soliven said.

Initially, MRC is looking at solar and hydropower investments.

“Right now, we’re in discussions with several proponents,” Soliven said, declining to elaborate on their prospects as they are in the early stages of negotiations.

MRC, however, will not abandon its real estate business, the company official said. Its current real estate project, New Cebu Township One, is a 60-hectare industrial estate registered with the Philippine Economic Zone Authority as a special economic zone in Naga City in Cebu.

Last May, the company announced it is developing a 60-megawatt (MW) solar farm in the industrial estate through its wholly-owned subsidiary Menlo Renewable Energy Corp. (MREC), the group’s first solar venture.

MREC has already secured a solar energy service contract (SESC) from the Department of Energy (DOE).

MREC president Dan Cantiller earlier said the project can be done as a whole or in phases, depending on the announcement of the next round of feed-in tariff (FIT) for solar.

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