SN Aboitiz Power (SNAP) announced on Monday that it has sealed a power supply agreement (PSA) with Singapore-based Nexif Energy, an independent power producer in Asia and Australia, for its solar farm project in Calabanga, Camarines Sur.
Under the agreement, SNAP will get its power supply from the 75-megawatt peak (MWp) photovoltaic facility of Nexif unit Calabanga Renewable Energy (CaRE). The PSA will be in effect for ten years upon completion of the project by the end of 2022.
SNAP President and CEO Joseph Yu said the partnership with Nexif demonstrates the company’s commitment to providing RE to its customers.
“This is a significant milestone for us. In addition to being our first long-term PSA, this agreement strengthens our position in providing our customers with responsible energy. The additional power to be supplied by Nexif Energy’s Calabanga Solar will help us sustainably support our growing list of contestable customers,” Yu said in a statement.
Nexif said it opted to help deliver renewable energy (RE) to the Philippines’ four-gigawatt contestable retail market. This is given that new solar farm capacity has been slow to come online since the availability of the country’s Feed-in Tariff scheme for new projects ended in 2016.
“Nexif Energy is delighted to enter into this partnership with SNAP on the Calabanga project. We look forward to a long and mutually beneficial relationship. We offer SNAP a competitive advantage in serving its customers in the contestable retail electricity supply market through this innovative power supply agreement,” said Nexif Founder and Co-CEO Matthew Bartley.
Nexif plans to replicate its approach in Calabanga for future projects, notably its 150MWp solar farm under advanced development in Negros Occidental. This is part of the multinational firm’s effort to expand its ventures in the Philippines to help accelerate both low-carbon development and the growth of the country’s retail electricity market.
SNAP is a subsidiary of Aboitiz Power Corporation, which has five retail electricity suppliers (RES) under the government’s green energy option program. Two of them are particularly under SNAP, namely SNAP-Magat and SNAP-RES.
AboitizPower, meanwhile, said it intends to invest around Php190 billion for RE projects until 2030.
