Citicore Renewable Energy And SMC Global Light Partner For 153.5MW Solar Power Plant In The Philippines

Citicore Renewable Energy Corporation (CREC) has announced a significant joint venture with SMC Global Light and Power Corp. (SGLP) to develop, build, and operate a 153.5MW solar power plant in Barangay Lucanin, Mariveles, Bataan. The collaboration was approved by CREC’s Board of Directors and solidified through the signing of an investment and shareholders agreement.

The partnership aims to increase CREC’s attributable solar energy capacity, aligning with the company’s goal to contribute approximately 1.0 GW of ready-to-build or under-construction solar energy capacity annually over the next five years. Initially, CREC will hold a 49% stake in the special purpose entity (SPE) established for the project, with SGLP holding 51%. Upon commencement of the construction phase, ownership will be equalized to a 50-50 split between the two companies.

“The transaction will add approximately 76.75MW to CREC’s solar energy capacity, advancing our commitment to renewable energy and supporting the country’s sustainability goals,” said Danica C. Evangelista, Corporate Secretary of CREC.

Key features of the joint venture include:

• The establishment of a special purpose entity for the solar power plant project.
• CREC’s subscription to additional shares during the construction phase to equalize ownership.
• A six-member Board of Directors for the SPE, with three directors nominated by each party.

The joint venture is subject to several conditions precedent, including the incorporation of the SPE, completion of due diligence, assignment of the SEOC by SGLP, and necessary consents from the Department of Energy (DOE).

The solar power plant project underscores the commitment of both CREC and SGLP to advancing renewable energy initiatives in the Philippines. This collaboration is expected to play a pivotal role in the country’s journey towards achieving its renewable energy targets and reducing carbon emissions.