CITICORE Renewable Energy Corp (CREC) and SMC Global Light & Power Corp (SGLP) are advancing renewable energy in the Philippines with a major new partnership to develop a 153.5-megawatt solar power plant in Barangay Lucanin, Mariveles, Bataan. This collaboration is a significant step toward boosting the country’s clean energy capacity and fulfilling its commitment to sustainable development.
Solar Power Plant Partnership Details
Under the joint venture, CREC and SGLP will jointly finance, construct, own, operate, and maintain the solar power plant. Initially, CREC will hold a 49% stake in the project, while SGLP will control 51%. As construction progresses, however, CREC will subscribe to additional shares until both partners reach an equal 50% ownership split. This project is a key addition to CREC’s portfolio, aligning with its strategy to contribute approximately 1.0 gigawatt of solar energy capacity annually over the next five years. The initiative not only expands the company’s solar capacity but also supports its goal of enhancing the Philippines’ overall energy mix and reducing the nation’s dependence on fossil fuels.
Expanding Solar Power Infrastructure
The Philippines is working to increase its solar capacity as part of its broader renewable energy goals, aiming for renewables to make up 35% of the energy mix by 2030 and 50% by 2040. This transition is supported by incentives under the Philippine Renewable Energy Act of 2008, which include reduced lease rates for government land, income tax holidays, and duty-free importation of renewable energy equipment.
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The development of the Bataan solar power plant—one of the largest in the country—highlights the significant investment and collaboration required to build a renewable energy future. This facility is expected to generate clean energy to power thousands of homes and businesses, contributing significantly to the nation’s energy needs.
Other major players in the renewable energy sector, such as AC Energy, are planning to add 5,000 megawatts of renewable capacity by 2025, with a substantial portion coming from solar power. The development of each new solar power plant in the Philippines brings the country closer to providing cleaner and more affordable power to a growing population. Despite this positive outlook, challenges in financing, regulation, and infrastructure modernization remain. Public-private partnerships (PPPs) like the one between CREC and SGLP are crucial for overcoming these obstacles, while the government’s role in providing a favorable regulatory environment is essential for continued growth.
Benefits of the Solar Power Plant
The Lucanin solar power plant is expected to bring numerous benefits to the region and the nation. The project will create local jobs during its construction phase and continue to support the community’s economy once operational. Environmentally, the plant will play a significant role in reducing greenhouse gas emissions, helping the Philippines meet its international climate commitments and improve air quality. This shift towards renewables will also enhance the country’s energy security by diversifying the power supply. By generating a stable and sustainable source of electricity, the solar plant will reduce the nation’s vulnerability to global oil price fluctuations and insulate it from volatile fossil fuel markets, ensuring a more reliable and cost-effective energy supply for the future.
