Pangilinan-led SP New Energy Corp (SPNEC) is targeting to conclude sell-down of up to 40% of its shareholdings to foreign firms that will be willing to infuse capital into its 3,500-megawatt Terra Solar power project to be integrated with 4,500-megawatt hours (MWh) of energy storage system.

According to SPNEC Chairman Manuel V. Pangilinan, the shares divestment could go up to 40%; and the foreign investors’ entry will be within the year.

“SPNEC will hold 60 [percent], foreign up to 40 [percent],” he told reporters in an interview on the sidelines of the signing of the memorandum of understanding (MOU) for the protection of the Verde Island Passage by the project-sponsors of the integrated Ilijan liquefied natural gas (LNG) project.

“We’re now talking to several foreign investors. So, nothing definite yet,” he stressed; while qualifying that they are keen on tapping either a technically-equipped or a deep-pocketed investor.

He stated that negotiations are currently being pursued with three to five investors – which are mainly European, American as well as Chinese and Japanese firms.

On the timing of the deal’s conclusion, he asserted that “within the year, definitely,” further stating that onward meetings have yet to be set between SPNEC and the interested parties.

The initial capacities from the Terra Solar project would be set for deliveries in 2026; and that will be underpinned by 20-year power supply agreement (PSA) underwritten by SPNEC affiliate Manila Electric Company.

The company previously conveyed that up to P200 billion worth of investments will be injected to advance the company into its development phase until its commercial operations.

The generated electricity from the combination of solar installation and energy storage will be delivered to satiate 850MW of mid-merit capacity needs of Meralco, as stipulated under the awarded power supply contract.

The solar farm venture will also partly satiate Meralco’s compliance to the Renewable Portfolio Standards (RPS), based on the prescribed percentage of yearly increment set by government policy.