SPNEC turns profitable with new solar farms

SP New Energy Corporation (SPNEC), a member of the Meralco Group of companies, has turned profitable in the first quarter of 2024 with a net income of P156 million and an attributable net income of P47.5 million from a loss of P24.57 million in the same period last year.

Based on its disclosure to the Philippine Stock Exchange, profits came on the back of its acquisition of operational assets, the Calatagan and Tarlac solar farms, with these and other plants being expanded ahead of the energization of Terra Solar. 

SPNEC Calatagan Solar Farm.jpg
Solar Philippines Calatagan Corporation solar farm

For the three month period ending March 31, 2024, the Group has recorded a total of ₱344.4 million revenues from nil last year, mainly contributed by Solar Philippines Calatagan Corporation, Solar Philippines Tarlac Corporation, and Laguna Rooftop Solar Corporation (LRSC) from the sale of electricity.

The Group has recorded a total cost of sales of P120.1 million in the first quarter of 2024, mainly comprised of depreciation of the solar power plant and amortization of ROU Assets which accounted for 70 percent of the total Cost of Sales. 

Other components are plant insurance, plant maintenance, power plant preventive maintenance schedule, salaries and wages, utilities, and others.

SPNEC had earlier acquired the assets of parent company Solar Philippines through a share swap. These included over 400 MW operating or under construction and the 3.5 GW solar, 4.5 GWh battery Terra Solar project, which plans to supply Meralco mid-merit for around 12 hours per day.

It also includes 1.8 GW of projects contracted under the Department of Energy’s Green Energy Auction, in which Solar Philippines won 70 percent of the auction’s renewable energy capacity and 91 percent of the solar capacity.

Also part of the assets is the 1.8 GW solar, 1.8 GWh battery project of Solar Philippines Batangas Baseload Corporation which has secured original proponent status for its proposal to supply Meralco baseload for up to 24 hours per day.

Together with its Nueva Ecija solar project, these would complete the company’s targeted 9 TWh per year of contracted energy, and potentially bring SPNEC’s contracted capacity to 8 GW scheduled to commence operations mostly between 2025 to 2026, which it estimates would be 2/3 of the total contracted renewable energy capacity of the Philippines.