PHRI’s solar project gets P2.65 billion loan from RCBC

MANILA, Philippines — A subsidiary of Meralco PowerGen Corp. (MGen)’s wholly owned renewable energy unit has secured a P2.65-billion loan facility from Rizal Commercial Banking Corp. (RCBC) for its renewable energy project.

The 15-year term project financing facility will fund the ongoing construction of PH Renewables Inc. (PHRI)’s 75-megawatt alternating current (MWac) solar project in Baras, Rizal.

PHRI is a joint venture between MGen Renewable Energy Inc. (MGreen), MGen’s wholly owned renewable energy unit, and Mitsui & Co. subsidiary Mit-Renewables Philippine Corp. (Mit-Renewables).

The solar plant is scheduled to commence commercial operations within the first quarter of 2023.

It will supply renewable energy to MPower, the local retail electricity supply arm of Manila Electric Co.

“We welcome having like-minded partners like Mitsui and RCBC in advancing the expansion of renewable energy projects in the country. We look forward to taking part in this evolving energy landscape as we move toward our target of building 1,500-MW of renewable energy over the next seven years,” MGen president and CEO Jaime Azurin said.

RCBC president and CEO Eugene Acevedo said the bank is fully committed to building a greener future by actively funding renewable energy projects, consistent with its sustainability initiatives.

RCBC Capital Corp. served as the arranger of the financing facility.

“This undertaking greatly benefits the country and the environment in general. While the endeavor was not without its challenges, the group was able to overcome these with flying colors, making it a more fulfilling exercise,” said RCBC Capital president and CEO Jose Luis Gomez said.

Aside from the solar project in Rizal, MGreen and Mit-Renewables are jointly developing a 45-MWac solar project in Cordon, Isabela.

MGreen also owns a 51-percent equity stake in PowerSource First Bulacan Solar Inc., which commenced operations of a 55 MWac solar plant in San Miguel, Bulacan in May 2021.

Capable of supplying base, intermediate, peak load and ancillary support, the MGen group offers flexible energy solutions to support the varying power requirements of the market.

MGen and Global Business Power Corp.’s power generation portfolio has a total gross capacity of 2,446 MW that utilize coal, liquified natural gas, diesel and solar technologies.