MANILA, Philippines – Basic Energy Corp. has forged a partnership with a German-backed solar developer in Asia to develop 10 megawatts (MW) of solar projects in two locations in Pangasinan, marking its first venture into solar power.
Basic Energy disclosed yesterday it signed a memorandum of understanding (MoU) with nv vogt Singapore Pte. Ltd. for a “joint interest” in developing solar power projects in San Fabian and Bolinao, as well as in other locations in Pangasinan.
A maximum of 10 MW peak project is targeted for each location, which are properties owned by Basic.
The solar projects could be done in phases, said Reynaldo Casas, president of nv-vogt Philippines Solar Energy One Inc., the local unit of the Singapore-based solar developer.
“Though projects [are targeted to have a capacity of] 10 MW, implementation will be in phases only, can be as low as five MW per phase,” he said in a text message.
Under the MoU, Basic Energy said nv vogt would conduct a due diligence study of the project, on an exclusive basis within 60 days from signing.
In a phone interview, Basic Energy senior vice president and general manager Anthony Cuaycong said nv vogt would conduct technical studies and specifications for the project to take off.
“It will be assessing the viability and extent of the project and come up with a GIS (grid impact study), plant layout and design,” he said.
Basic Energy, on the other hand, is in charge of securing all the necessary local and national government permits required for the project, Cuaycong said.
The company has already filed a letter of intent with the Department of Energy.
Cuaycong also said the company would be in charge of the identification of the land needed, depending on the size of the project.
“Within 60 days, the parties will be able to determine whether to extend the MoU and decide if both will push through with the project,” he said.
Under the partnership, the partners will initially look at the property in San Fabian, which has a total lot area of 17.8 hectares.
This would allow Basic Energy to gain experience in developing solar projects, Cuaycong said.
“Basic Energy is not yet familiar with solar developments. This will be our first [solar] project and we aim to get experience and get the project working,” he said.
Basic Energy is into oil and gas exploration, geothermal energy and hydropower development.
It is presently a party in the exploration, development and production of contract areas in Service Contract 47 in offshore Mindoro and Service Contract 53 in onshore Mindoro.
Through PT Basic Energi Solusi, Basic Energy is also looking for opportunities in the management and operation of oil wells in other parts of Indonesia.
For geothermal, it has the Mabini, Batangas Geothermal Service Contract, Iriga Geothermal Power Project, Mariveles Geothermal Power Project , the East Mankayan Geothermal Power Project and the West Bulusan Geothermal Power Project.
For hydropower, it has been awarded the service contracts for the two-megawatt Puntial 1, two-MW Puntian 2, three-MW Malogo 2 and two-MW Talabaan hydropower projects.