Citicore eyes higher 2025 capex to fund projects

MANILA, Philippines — Tycoon Edgar Saavedra’s Citicore Renewable Energy Corp. (CREC) is likely to boost its capital expenditure (capex) this year, setting the stage for the next wave of green projects across the country.

While the annual operating plan has yet to be presented to the CREC board, company president and CEO Oliver Tan hinted that the budget for 2025 will be “most likely higher.”

Tan said CREC earmarked a capex of around “P35 billion” in 2024 to fuel the development of its first gigawatt (GW) of renewable energy (RE) projects that are targeted for commercial operations this year.

In particular, about 200 megawatts of projects are set for activation by April, with the remaining 800 MW scheduled for the second half of the year.

“We have four solar projects in Tuy, Batangas; one in Arayat (Pampanga); two in Pangasinan and two in Pagbilao (Quezon) that will come online within the year. These are mostly the GEA-2 projects,” Tan noted.

CREC emerged as one of the biggest winners of GEA-2 or the second round of the green energy auction in 2023, after securing about 26 percent or 916.58 MW of total subscribed capacity.

Administered by the Department of Energy, GEA-2 attracted over 3,440 MW of RE capacities that have been committed for development and installation from 2024 to 2026.

With the full operation of its upcoming RE projects, CREC is poised to end the year with an attributable renewable capacity of about 1.2 GW.

Furthermore, Tan said the company intends to tap the capital market this year to raise additional funds for the construction and deployment of more renewables.

“We’re rolling out the second GW in the pipeline this year, as we aim for one GW per year over the next five years,” he said.

CREC’s five-GW target recently received a significant boost with the entry of Indonesia’s state-owned energy firm Pertamina.

Pertamina, through PT Pertamina Power Indonesia (Pertamina NRE), will subscribe to about 2.23 billion CREC common shares at P3 apiece, equivalent to a 20 percent stake.

The subscription valued at around $115 million is targeted for implementation within the first quarter of 2025, CREC told the Philippine Stock Exchange on Monday.

“The company will benefit from the proceeds of the transaction to contribute to the capital expenditure requirement in line with its five-GW project roadmap,” CREC said.

“Additionally, the company will gain the opportunity to partner with Pertamina NRE to develop renewable energy projects in Indonesia, allowing for the company’s potential expansion in the region,” it added.