Meralco is poised to become the majority owner of SP New Energy Corp. (SPNEC).
MGen Renewable Energy Inc. (MGreen), a subsidiary of the company’s power generation arm Meralco Powergen. Corp (MGen), will invest Php15.9 billion in SPNEC, comprising 15.7 billion common shares plus 19.4 billion redeemable preferred voting shares. This gives MGreen a 50.5-percent voting interest in SPNEC.
The investment will be used for the expansion of the latter’s solar projects. SPNEC is a leading developer and operator of solar power projects. In July 2022, the company managed to close on a 6-gigawatt deal with the government.
Through SPNEC, MGen aims to develop 3,500 megawatts of solar panels and 4,000 megawatt-hours of battery energy storage in Luzon, aligning with the Department of Energy’s goal to derive 35 percent of the nation’s energy from renewables. Meralco chairman Manuel V. Pangilinan claimed that this would be one of the world’s largest solar ventures.
The finalization of the deal is pending regulatory approval. By 2027, MGen aims for 59.1 percent of its capacity mix to be from renewables, a jump from 9.6 percent in 2023.
In a previous announcement made in August, MGen disclosed plans to allocate Php18 billion to boost its renewable energy capacity by over gigawatts. The company set a goal to achieve 1,500 megawatts of attributable renewable energy capacity by 2030, which includes battery storage ventures as part of its long-term sustainability strategy. In the subsequent month, Meralco also expressed interest in small nuclear power plants.
Via: PhilStar