Citicore Renewable Energy Corporation (CREC), a leading renewable energy (RE) developer in the Philippines, announced that PT Pertamina Power Indonesia (Pertamina NRE), an Indonesian-based energy firm, has made its first investment in the country.
In a disclosure to the Philippine Stock Exchange (PSE) on Friday, Jan. 10, CREC announced that it signed a share subscription agreement with Pertamina NRE, acquiring 20 percent or 2.23 million common shares for approximately P6.7 billion.
This strategic partnership provides Pertamina NRE with access to CREC's expertise in project development, engineering, procurement, and construction (EPC). In turn, CREC will have the opportunity to collaborate with Pertamina NRE on RE developments in Indonesia, expanding its presence in the region.
The proceeds from this investment will support CREC's ambitious growth plans, which include developing renewable energy projects nationwide and achieving 1 gigawatt (GW) of green energy capacity annually, with a target of 5 GW over the next five years.
CREC currently manages a diverse RE portfolio encompassing solar, hydro, and wind projects, and also participates in the retail electricity supply market.
Oliver Tan, President and Chief Executive Officer of CREC, expressed his enthusiasm for the partnership, stating, "the partnership with Pertamina NRE presents limitless opportunities for Indonesia and the Philippines to collaborate on innovative technologies and practices in renewable energy. It gives a wider stage to CREC’s unique end-to-end capabilities by opening doors in Indonesia even as we drive our developments in the Philippines at full speed.”
CREC further emphasized the regional significance of the partnership: "With Southeast Asia seen as a driver in the demand growth for renewable energy worldwide, the strategic partnership between CREC and Pertamina NRE will benefit both the Philippines and Indonesia in accelerating national as well as regional renewable energy goals.”
Pertamina NRE is a key player in Indonesia's power generation and RE development, focusing on gas-based power generation, geothermal energy, and other renewable sources, including solar and wind.