Basic Energy is looking into solar power plant investments in Japan as part of its overseas expansion following the halt of the feed – in – tariff (FIT) scheme by the Philippine Government.
In a disclosure to the Philippine Stock Exchange, Basic Energy said that the board approved its move to conduct a refundable earnest deposit with Solmax Power Limited in Hong Kong to run due diligence of Solmax and its project portfolio.
The company is obligated to make a refundable deposit to conduct due diligence on Solmax and its solar projects in Japan, Basic Energy SVP and general manager Anthony Cuaycong said.
The deposit will either be converted into equity or will be refunded, depending on the assessment.
Earlier, Basic Energy said that they are scouting for investments in solar power in Asia with the Vintage Engineering Public Co. Ltd (VTE).
This overseas investment is in line with the government’s decision to scrap the FIT – an incentive given to power developers for a 20 year – period to invest in the more expensive renewable energy sector.
Meanwhile, the company also disclosed that it has approved the extension of a cooperation agreement with PT Ekamaro for three years until October 31, 2020.
This is under a subsidiary, PT Basic Energu Solusi, and Cepu Indonesia, an oil and gas concession.
“Basic Energy has an oil and gas concession in Indonesia, which is about to expire in October. In order for the agreement to continue, we just had to extend it,” Cuaycong said.