Philippines-based property development firm MCR Allied has closed another deal in the solar power business. The company announced in a filing with the Philippine Stock Exchange that it will invest P225 million in the acquisition of 15% of a 50 MW solar power plant in the Philippines.
According to the filing, the solar facility is owned and operated by local solar power producer Sulu Electric Power and Light Philippines Inc. (Sepalco) and is located in Castilla village, close to Leyte where the company has its headquarters.
The new investment comes after two more solar-related agreements the company has recently signed with other firms in the PV industry. The first MOU relating to possible investments in solar was signed by MRC with China Energy Engineering Group Guangdong Power Engineering (GPEC) this summer. Furthermore, MRC has closed more recently another MOU with InkSolar, a Philippines-based PV power distributor for distributed generation.
MRC Allied’s unit Menlo Renewable Energy Corp. (MREN) is currently developing two large-scale PV projects, firstly a 100 MW solar farm in Clark Green, Pampanga, which is estimated at P5.5 billion, and also a 60 MW solar project in Nage City, Cebu, estimated currently at P3.3 billion ($64.8 million) and expandable by another 40 MW.
MRC acquired MREN in 2015 to venture into renewables with investments in solar generation. MREN has thus far built a 60 MW solar facility in Visayas.
In January 2017, MRC confirmed in a disclosure to the Philippines Stock Exchange that its board of directors approved the increase of MREN’s capital stock 5-fold from P100 million to P500 million. After this capital increase, the company set ambitious targets of accumulating a portfolio of 1 GW of clean energy, on its own or through joint ventures, by 2022.
By Frederic Brown