MGen, partners tap SUMEC for Bulacan solar project
MANILA, Philippines — The renewable energy unit of Meralco Powergen Corp. (MGen) and its partners have tapped a contractor to build a 50-megawatt (MW) solar project in Bulacan.
PowerSource First Bulacan Solar Inc. (PFBSI) executed last week an engineering, procurement and construction (EPC) contract with SUMEC Complete Equipment & Engineering Co. Ltd. for its solar power project.
The contract covers a 50-MW solar plant in San Miguel, Bulacan. The project, which costs P4.25 billion, will sell energy to Manila Electric Co. (Meralco) under an approved power supply agreement (PSA).
MGEN Renewable Energy Inc. (MGreen) holds a 40 percent interest in PFBSI. Other shareholders are PowerSource Global Holdings Corp. (36 percent) and Singapore’s Sunseap International Pte. Ltd. (24 percent).
MGen president and CEO Rogelio Singson said the Bulacan project is the first solar investment of MGreen, the renewable energy subsidiary of MGen.
“We are committed to undertake 1,000 MW of renewable energy projects in the next five to seven years. This start is one of the lego pieces that will make a thousand,” he said.
MGreen plans to develop large-scale solar, wind and hydropower projects that will provide reliable, environment-friendly power at competitive prices without the need for subsidy.
Last week, Singson said MGreen is eyeing to build a floating solar project with one of the four entities that have been granted the right to develop projects in Laguna Lake.
The proposed floating solar project is awaiting the go signal from the Laguna Lake Development Authority (LLDA) to commence construction.
Currently, the LLDA is formulating a policy for large-scale floating solar projects over Laguna Lake.
To fund its pipeline of solar project developments, MGreen recently received a funding of P424 million from parent firm Meralco.
The projects in the pipeline have a combined capacity of 210 MW and a total estimated project cost of P10.01 billion.
Meralco formed MGreen earlier this year to pursue the development of 1,000 MW of green energy projects in the next five to seven years.
The newly formed unit will serve as the platform for the strategic push to develop renewable energy projects, primarily solar, wind and run-of-river hydro.
The development of renewable energy projects is aligned with MGen’s growth aspirations, which are focused on advancing renewable energy prospects and utilization of high efficiency, low emission (HELE) technology for baseload power plants.