SPNEC seeks funding boost for world’s biggest solar farm

March 4, 2024 | 12:00am

MANILA, Philippines — Manuel V. Pangilinan-led SP New Energy Corp. (SPNEC) is looking to bring in partners, particularly foreign investors, to help finance the development of the P200-billion Terra Solar development in Nueva Ecija and Bulacan, which will become the world’s largest solar project once completed.

Pangilinan, chairman of SPNEC, said the company has started talks with potential investors and has engaged financial advisors to help in the transactions.

“Our intention is to sell down. Right now, SPNEC owns 100 percent of Terra Solar so we will have to get in new investors into Terra Solar, the project company, to help us with the financing of the project. The cost is about P200 billion to implement the project in full,” he said.

SPNEC, through subsidiary Terra Solar Philippines Inc., is developing the massive solar farm in Nueva Ecija and Bulacan which will consist of 3,500 megawatts (MW) of solar panels and 4,000 megawatt-hours of battery storage.

Pangilinan said SPNEC is willing to sell as much as 40 percent stake in Terra Solar.

“Nothing definitive has been agreed. It’s just the process of talking to potential investors that has started. Most likely foreign investors will  own up to 40 percent equity stake in Terra Solar,” he said.

Pangilinan said SPNEC has organized a team dedicated to the execution of the project to ensure its timely completion.

The Terra Solar project is targeted to be completed in two phases.

The first phase, with a target capacity of 2,500 MW, is eyed for completion by 2026, while the second phase, with a capacity of 1,000 MW, is slated to be finished by 2027.

Covering approximately 3,500 hectares, the project is expected to be larger than India’s Bhadla Solar Park and China’s Golmud Solar Park, currently the world’s largest solar farms at over 2.2 gigawatts.

“There’s a dedicated team that is fully devoted to getting the Terra Solar facilities done because the schedule is early part of 2026, we should start energizing the solar facilities. We intend to meet our targets,” Pangilinan said.

Last January, SPNEC said work has started on clearing the site, ahead of the construction of the project’s interconnection facilities with the National Grid Corp. of the Philippines and the installation of over five million solar panels to meet its construction timeline.

The company has secured over 3,000 hectares for its projects, primarily in Nueva Ecija and Bulacan, most of which have already been converted to industrial use.

SPNEC has recently been acquired by MGen Renewable Energy Inc. (MGreen), a wholly owned subsidiary of Meralco Powergen Corp.

MGreen has raised its stake in the company, acquiring 2.17 billion shares of SPNEC from Solar Philippines Power Project Holdings Inc. for P2.50 billion, representing 4.34 percent.

MGreen and its affiliates’ stake in SPNEC is now at  55.96 percent from the previous 50.53 percent.

Prior to the change in control, SPNEC was majority owned by Solar Philippines, which is beneficially owned by Leandro Leviste.

Solar Philippines continues to own 18.993 billion shares of SPNEC, with other shareholders and the public owning the remaining shares.