Out-Law News | 26 Feb 2021 | 11:09 am | 1 min. read
Solar Philippines Biga Corporation is planning to build a 2 gigawatts (GW) solar plant, combining with 6GW battery energy storage system and 600 megawatts (MW) diesel backup in Nasugbu, Batangas, 115 kilometres south west of Metro Manila, Philippines.
The firm has secured a solar service energy contract from Philippines’ energy department for exclusive right to explore, develop and use the solar energy resources.
The project will be developed on an area of 2,000 hectares. The feasibility study for the proposed project started in 2020.
The firm aims to deliver financial closure of the project in the third quarter of 2022. Construction work is scheduled to start in the fourth quarter of 2022 and complete by the third quarter in 2024.
John Yeap of Pinsent Masons, the law firm behind Out-Law, said:” The latest version of the National Renewable Energy Program from the Department of Energy has set a renewable energy target of 55.8% by 2040. Ambitious solar projects such as this proposed project by Solar Philippines will no doubt provide confidence on achieving the target.”
“However, with the large increase in intermittent power generation, issues around grid stability and the need for more fast start capabilities may constrain the utilisation of such intermittent generation. Going forward, we will likely see increased need for fast start capability as well as grid augmentation. Regulatory issues around storage will also have to be addressed,” he said.
Solar Philippines Biga Corporation is a subsidiary of Solar Philippines Power Project Holdings.
In January, Ayala’s subsidiary AC Energy acquired a 97.6% stake in Solar Philippines Central Luzon from Solar Philippines Power Project Holdings to form a joint venture to develop solar power projects in central Luzon, Philippines.