SPNEC eyes 10-GW solar project

MANILA, Philippines — Solar Philippines Nueva Ecija Corp. (SPNEC) is looking to conduct a stock rights offering and forging more partnerships, as it plans to develop 10 gigawatts (GW) of solar projects.

SPNEC’s 10-GW plan represents an almost 10-fold increase in the country’s grid-connected solar capacity of 1.021 GW as of December 2020, based on Department of Energy (DOE) figures.

To support the development of such projects, SPNEC said it may conduct a possible stock rights offering and form joint ventures.

SPNEC said solar projects of this scale would only be made possible by partnering with the country’s leading power companies.

“Our aim is not to compete with the country’s power companies, but to make it easier for them to build solar projects, so that together, we can make solar the largest source of energy in the Philippines,” Solar Philippines founder Leandro Leviste said in a statement.

Solar Philippines, SPNEC’s parent firm, recently formed joint ventures for several of its projects.

The company plans to complete negotiations for joint ventures for its 10 GW of solar project developments within 2022, with its interest in these projects subject to potential asset-for-share swaps with SPNEC.

The asset-for-share swap is subject to a third-party valuation and fairness opinion by an independent financial advisor.

SPNEC has also scheduled a stockholders’ meeting on March 7 to approve the increase in its authorized capital stock to 50 billion shares from 10 billion shares ahead of the planned asset-for-share swap.

Solar Philippines began developing this massive solar pipeline in 2015. Its portfolio now comprises of over 20 solar project companies, which include over 400 megawatts (MW) already operating or under construction, and over 10 GW in development.

These developments are located primarily in the provinces of Nueva Ecija, Batangas, Bulacan, and Tarlac, where Solar Philippines has spent the past years consolidating land suitable for solar in relative proximity to the Greater Manila Area.

SPNEC debuted in the stock market last month with a P2.7 billion initial public offering (IPO).

Part of the proceeds will be used to construct the first 50 MW out of the 500 MW that SPNEC has already developed.

Meanwhile, the largest part of the IPO proceeds will be used to acquire land to expand beyond 500 MW, in support of SPNEC’s plan to develop the largest solar project in Southeast Asia.