Citicore planning to offer first power REIT this year


Renewable energy (RE) firm Citicore Power, Inc. is planning to offer the country’s “first power REIT (real estate investment trust)” this year.

In a report by BusinessWorld, Citicore Power President Oliver Tan said that the REIT would initially hold 163 megawatts worth of the company’s operating plants, after which it would be able to free up equity to reinvest the fund to build new solar projects.

Tan further said that Citicore has allotted Php4 billion in capital expenditures (capex) for solar and hydropower projects. The solar projects cost Php2.5 billion, while the hydro ventures get the remaining Php1.5 billion and are to be built within three years. The capex would be funded through a debt-equity mix.

Citicore currently operates solar farms in Tarlac, Pampanga, Bataan, Bulacan, Negros Occidental, Cebu, and South Cotabato. Together, they reduce around 240,000 tons of carbon emissions annually.

The company is set to begin by next week the construction of its 50-megawatt alternating current (MWac) solar plant project in Arayat and Mexico, Pampanga. The project, a joint venture between Citicore and AC Energy, is targeted for completion by November. By then, it would contribute to Citicore’s goal of attaining 1.5 gigawatts in its RE portfolio by 2025.

Citicore is also looking to build run-of-river hydro projects in Isabela. Tan said that road construction already began last year, but was halted by the COVID-19 pandemic. The company hopes to resume working on the said project this year.