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SPNEC firming up plans to expand to 10 GW

Solar Philippines Nueva Ecija Corporation (SPNEC) is firming up plans for the development of 10 GW of solar projects. This would represent an almost 10-fold increase in the country’s grid-connected solar capacity as of December 2020, which according to Department of Energy (DOE) figures was 1.021 GW. 

This would be enabled by asset-for-share swaps with its parent, Solar Philippines. SPNEC has not yet approved any asset-for-share swap, which is subject to a third-party valuation and fairness opinion by an independent financial advisor. 

Solar Philippines began developing this pipeline in 2015, in anticipation of the day when this demand would come. Its portfolio now comprises over 20 solar project companies, which include over 400 MW already operating or under construction, and over 10 GW in development according to DOE figures. 

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. 

To support the development of these projects, SPNEC may conduct a possible stock rights offering, and form joint ventures. The company emphasized that 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,” said Solar Philippines founder Leandro Leviste. 

Solar Philippines has recently formed joint ventures for several of its projects. The company plans to complete forming 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. 

SPNEC stock closed yesterday at Php 1.96/share, up 96% since its IPO.