PetroGreen inks Tarlac solar contract

MANILA, Philippines - PetroGreen Energy Corp. (PGEC), a subsidiary of publicly-listed PetroEnergy Resources Corp., has signed with the Department of Energy (DOE) a service contract for a solar power project in Tarlac.

In a disclosure to the Philippine Stock Exchange, PetroEnergy said PetroGreen’s solar plant would have a capacity of 10 to 50 MW and would rise in a 50-hectare property in Tarlac near Hacienda Luisita.

PGEC said it would immediately commence its two-year, pre-development work program approved by the Department of Energy, together with technical and financial due diligence studies.

PGEC intends to develop the solar facility in stages and could expedite its work program based on the uptake of the 500-MW solar Feed-in-Tariff (FIT) allocation.

FIT is a set of incentives given to renewable energy players.

Under the FIT system, renewable energy companies are entitled to the following FIT rates: P9.68 per kwh for solar power, P8.53 per kwh for wind and P5.90 per kwh for run-of-river hydroelectric power.

 “The site has a flat terrain, with no shading from trees or nearby topographies, and is strategically located near existing access roads, power distribution lines, and substations,” the company said in its disclosure.

The Tarlac solar project is the latest addition to PGEC’s portfolio of renewable energy ventures on top of the 20 MW Maibarara Geothermal Power Plant where it has 65 percent ownership, and the 50 MW Nabas Wind Power Project where it holds 40 percent equity interest.

PGEC is 100 percent owned by publicly-listed PetroEnergy Resources Corp.