PetroSolar Corporation (PSC), a subsidiary of PetroGreen Energy Corporation (PGEC), led by the Yuchengco Group, has finalized a power supply agreement (PSA) with Shell Energy Philippines Inc.
The agreement will draw power from PSC’s 20-megawatt Tarlac-2 solar farm in Tarlac City. As part of the deal, PGEC will supply electricity generated from its solar plant to Shell Energy, the retail electricity supplier (RES) of the multinational energy company in the Philippines.
Details about the tariff and the specific volume of solar capacity to be provided to Shell within certain timeframes have not been disclosed by the two companies.
According to PGEC’s President & CEO, Francisco G. Delfin, Jr., this agreement with Shell reflects their mutual commitment to clean energy and follows a previous power supply agreement signed between the two firms last year.
PGEC and its subsidiary companies have been expanding their renewable energy (RE) investments, not only in solar farms but also in onshore and offshore wind farm installations in various locations in the Philippines. It is anticipated that the Yuchengco Group and its partner will take a leading role in developing the first offshore wind farm to contribute power to the grid.
Bernd Krukenberg, President of Shell Energy Philippines, highlighted that they chose PetroSolar as a partner due to its established reputation and dedication to RE development. This collaboration demonstrates Shell’s commitment to providing sustainable energy solutions to its customers, especially in the commercial and industrial sectors where RE-generated power supply is preferred.
Shell is also supporting Shell Pilipinas Corporation’s transition to clean energy, including supplying RE-based power to electric vehicle charging stations.
In the Philippines’ energy sector, renewable energy plays a pivotal role, not only in achieving profitability but also in aligning investments with the growing shift towards green energy to mitigate climate change risks.
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