Out-Law News | 17 May 2021 | 3:03 am |
Japanese company Mitsui and Philippine independent power producer Global Business Power Corp will jointly develop a 115 megawatt (MW) solar project in the Philippines.
It is reported that the project will be located in the northern province of Rizal and is expected to cost ¥7 billion yen ($63.8 million). 40% of the cost will be covered by Mitsui.
The plant is expected to be completed by March 2022. Its power will be sold to Philippines’ largest distributor Manila Electric for 20 years.
John Yeap of Pinsent Masons, the law firm behind Out-Law, said: “The Philippines national renewable energy target of achieving 55.8% of renewables by 2040, is one of the most ambitious in South East Asia. Solar will play an increasingly important role, and this project is indicative of the opportunities for such projects, not just for domestic players but regional companies pivoting towards renewables as part of their overall Environmental, Social, Governance (ESG) agendas.”
Global Business Power is a wholly owned holding company of Meralco PowerGen (MGen) which is owned by Manila Electric. MGen completed 86% acquisition stake in Global Business Power for P34.466bn ($720.8m) in April.
Mitsui plans to raise the share of renewables to 30% by 2030 from that number 15% in 2019.