Philippines: PHINMA Energy eyes 45-megawatt solar plant in Batangas

Philippines: PHINMA Energy eyes 45-megawatt solar plant in Batangas

PHINMA Energy announced plans to boost its renewable energy portfolio by
building a solar energy plant in Batangas.

In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday,
September 13, the firm said it has "entered into a solar service contract
with the Department of Energy (DOE) which grants it the exclusive right to
explore, develop, and utilize the solar energy resource in a 486-hectare
area in the city of Lipa and municipality of Padre Garcia" in Batangas
province.

PHINMA Energy added that it hopes to construct a 45-megawatt (MW) solar
plant in the service contract area.

Should it be successful in developing the plant, it added, the term of the
service contract would be for 25 years, and may be extended by another 25.

PHINMA Energy directors indicated earlier this year that the company would
be concentrating on adding to its renewable energy portfolio in lieu of coal
power, especially with the government's new incentive program, the Renewable
Portfolio Standard, on the horizon.

Trans-Asia Renewable Energy Corporation, the firm's renewable energy arm,
currently operates a 54-MW wind power farm in San Lorenzo, Guimaras, which
it previously indicated that it plans to expand should the DOE decide to
reinstate the wind feed-in tariff.

The service contract with the DOE comes as PHINMA Energy is also preparing
for a legal battle with state-owned Power Sector Assets and Liabilities
Management (PSALM) Corporation over a 2013 contract to operate a geothermal
plant in Leyte.

In a separate disclosure also on Wednesday, PHINMA Energy said the case
against PSALM "has no material adverse effect" on its operations.

It explained that it is seeking a temporary restraining order (TRO) to
restrain PSALM from terminating their agreement on the ground of
administrator's default and to prevent PSALM from asserting any further
claim to the detriment of PHINMA Energy.

"In the event that the court rules in favor of PHINMA Energy, the agreement
may be invalidated and an award for damages may be made to the corporation,"
explained PHINMA, while "an adverse decision may open the company to
possible financial claims by PSALM."

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Link to Original Article:
https://www.rappler.com/business/182076-phinma-energy-solar-plant-batangas

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com




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