SPNEC Acquires Prime Infra’s Shares In Joint Venture ‘Terra Solar Philippines’ For P6 Billion

SP New Energy Corp. (SPNEC) has successfully acquired the complete shares of Prime Infrastructure Inc. (Prime Infra) in Terra Solar Philippines Inc. (TSPI) for P6 billion. This move positions SPNEC as the sole owner of TSPI, marking a significant step in the development of the world’s largest solar project, estimated to cost around P200 billion.

As disclosed to the Philippine Stock Exchange (PSE), the Deed of Absolute Sale was executed by SPNEC to obtain shares from Prime Infra. This transaction, combined with SPNEC’s shares acquired from Solar Philippines, ensures SPNEC’s full ownership of 100 per cent of TSPI.

Established in 2020 as a 50-50 joint venture between SPNEC’s parent company, Solar Philippines, and Prime Infra, TSPI aims to develop a groundbreaking 3.5 GW solar and 4 GWh battery storage project. This initiative surpasses the scale of India’s Bhadla Solar Park and China’s Golmud Solar Park, currently the world’s largest solar farm.

Furthermore, this project’s capacity exceeds the total of all grid-connected solar projects operating in the Philippines, as per the Department of Energy’s latest figures from 2023. SPNEC has already secured over 3000 hectares of land for its projects, primarily converted to industrial use.

The project’s advancement is supported by a P15.9 billion investment agreement signed on October 12, 2023, between MGen Renewable Energy (MGreen), Solar Philippines, and SPNEC. Following the closing, MGreen will hold a 50.5 per cent total voting interest, owning common and preferred shares of SPNEC.

MGreen, the renewable energy development arm of Meralco Powergen Corporation, a subsidiary of Manila Electric Company, the country’s largest private-sector electric distribution utility, plays a crucial role in this collaboration. Meralco Chairman and CEO Manuel V. Pangilinan highlighted the project’s significance, contributing to the Department of Energy’s vision to achieve 35 per cent renewable energy in the country.

The estimated total investment for this transformative solar project is approximately P200 billion, drawing considerable interest from foreign investors due to its scale and potential impact on the Philippines’ energy landscape.