Basic Energy mulls solar projects abroad

MANILA, Philippines -  Basic Energy Corp. and its partner are scouting for solar power investments overseas since government announced it will nix the expansion of the feed-in tariff (FIT) scheme.

The company will pursue solar ventures with Vintage Engineering Public Co. Ltd. (VTE) in Asia, Basic Energy SVP and general manager Anthony Cuaycong said in a text message.

“Basic Energy continues to actively seek solar projects given their fast turn around time. Because VTE has a stake in Basic Energy, it’s a natural fit in terms of solar partnerships,” he said.

The company is still studying possible solar projects but recent pronouncement by government to scrap the FIT regime will force it to look for investments elsewhere.

“There are a few being assessed in the country but the challenges in coming up with a variable enterprise given the absence of a FIT regime have moved Basic Energy and VTE to also look abroad,” Cuaycong said. “It’s premature to mention which countries at this point but they’re in Asia.”

Energy Secretary Alfonso Cusi said earlier the government would no longer expand the FIT regime into another round.

VTE is a publicly listed company headquartered in Thailand with a nine percent stake in Basic Energy and has the option to raise its interest to 25 percent.

The two firms formed a strategic partnership late last year to pursue the exploration, development, and production of renewable energy resources in the Philippines and abroad.