SP New Energy Corporation (SPNEC), a subsidiary of the Meralco Group, is shelling out P8.93 billion for the acquisition of additional stake in Terra Solar Philippines Inc. and Terra Nueva Inc.
In a regulatory filing on Thursday, Oct. 10, SPNEC said its board of directors approved the subscription of shares in Terra Solar for a total of P6.03 billion and an additional stake in Terra Nueva for P2.9 billion.
Partial payment for the subscription of Terra Solar shares will be made in the form of receivables.
Terra Solar is currently developing the world’s largest solar project spanning Bulacan and Nueva Ecija.
The project, with an investment value of P200 billion, will sit on a 3,500-hectare property in the said provinces and will be capable of producing 3,500 megawatts of solar capacity and 4,000 megawatt hours of battery storage. It is targeted to be completed in 2027.
It will be larger than China’s Golmud Solar Park and India’s Bhadla Solar Park which are currently the world’s largest solar farms offering a capacity of 2,200-MW.
According to the company, Terra Solar’s total capacity will be capable of powering 12 percent of the country’s overall demand and surpass the 1,500-MW solar capacity of all solar projects connected to the grid.
Last month, Terra Solar announced that it tapped Meralco’s engineering, procurement, construction and operations arm, Meralco Industrial Engineering Services Corp. (Miescor) for the design and construction of an infrastructure that will connect Terra Soalr project to the national power grid.
The deal involves the construction of a 34.5/230/500-kilovolt (kV) main collector substation and two 34.5/230-kV solar photovoltaic satellite collector substations, as well as the installation of two double-circuit 230-kV transmission lines.
Meanwhile, Terra Nueva is SPNEC’s wholly owned subsidiary intended to hold developments funded by its stock rights offering.
On the same day, SPNEC’s board of directors announced that Terra Nueva will be responsible for managing the site where Terra Solar’s solar and battery projects are situated and lease the said development to the company.