SP New Energy Corp. (SPNEC) said completion rate of the world’s largest solar project being developed by Terra Solar Philippines Inc. is expected to reach between 80 to 90 percent by the end of the mo is expected to reach 80 to 90 percent completion rate by the end of the month.
The company shared the update when it introduced its foreign partner for the P200 billion solar farm in Nueva Ecija and Bulacan with 3,500 megawatts (MW) of solar panels and 4,000 megawatt-hours of battery energy storage, in a corporate event in Pasig City last Friday.
“I would say it’s around 60 to 67 percent completed already. I mean, it’s also the arrangement, the contractual arrangement. So, I think by the end of September, it’s going to be about 80 to 90 percent completed already,” Manuel Pangilinan, SPNEC chairman, told reporters at the sidelines of the said event.
SPNEC said the project development phase include he selection of engineering, procurement and construction (EPC) contractor for transmission and land acquisition as well as the procurement of battery storage and solar power cells.
SPNEC tapped United Kingdom-based private equity firm, Actis which provided P$600 million for a 40 percent stake in Terra Solar.
The company said investment banks including Morgan Stanley and UBS ran the process of searching for SPNEC’s partner which attracted the interest of as much as 81 global investors.
Pangilinan said Actis will likely be their only partner for the Terra Solar project as they are keen on keeping a stake that is no lower than 60 percent.
The company also said for the entire project cost of Terra Solar, 75 percent will be sourced from debts while the remaining 25 percent will be from equity from SPNEC and Actis.
Pangilinan added they currently have a short list of EPC contractors for the transmission aspect of the Terra Solar project which includes Fujian Engineering and Meralco Industrial Engineering Services Corp.
Emmanuel Rubio, SPNEC president and chief executive officer, earlier said completion targets for major components of Terra Solar are set for December 2024 and January 2025, particularly for the award of EPC for both transmission and photovoltaic segments of the project.
Rubio had said Terra Solar will be completed in two phases: the first phase is scheduled by 2026 and the second phase by 2027.
