Solar Philippines Nueva Ecija Corporation (SPNEC) will be providing the Angeles Electric Corporation (AEC) power supply for ten years after signing a power supply agreement (PSA) for emerging as the best bid in the distribution utility’s (DU) Competitive Selection Process (CSP).
Under the deal, SPNEC – the developer of the 500-megawatt “solar ranch” in Peñaranda, Nueva Ecija – will be supplying around 97.8 megawatt-hours a day from 6AM to 6PM. According to a BusinessWorld report, the PSA will take effect on March 26, 2023 or upon approval by the Energy Regulatory Commission.
“We wish to thank Angeles Electric for conducting a very professional CSP that will benefit the consumers of Angeles City. We are grateful for this opportunity to work with Angeles Electric, which is a pioneer of the solar industry of the Philippines,” Leandro Leviste, founder of SPNEC parent firm Solar Philippines said in a statement.
The CSP comes as more power auctions are being planned in support of the Department of Energy’s (DOE) Renewable Portfolio Standards program.
AEC is Luzon’s third largest DU.
SPNEC added that the deal would provide it a base of contracted revenues while being able to sell the rest of its power supply to the spot market or other off-takers.
“The contracting of the first phase of our solar farm shows that renewable energy in the Philippines is a supply-constrained market. This reinforces our drive to expand SPNEC’s capacity, to meet the great demand for renewable energy in the Philippines,” Leviste said.
Meanwhile, SPNEC is currently finalizing its asset-for-share swap with Solar Philippines. SPNEC said the swap may allow it to acquire over 20 solar project companies, which include more than 10-gigawatts of projects being developed, based on DOE data.