Citicore Solar Philippines Power Project Holdings said that its 60 megawatt (MW) Calatagan-project is on-track, while it’s near 100-MW Central Luzon project will finish construction much later than the previous target.
The company was created on May through a joint-venture agreement between Citicore Power, a sister company of Megawide Construction Corp., and Solar Philippines.
“Calatagan has already started construction and will be finished by December . . . Second project will be in Central Luzon and will be finished by the first quarter of 2016, those combined will be the largest portfolio of projects in Luzon,” Solar Philippines President Leandro Leviste said.
Leviste said in June both the Calatagan project and the near 100-MW Central Luzon project will be completed by December 2015.
He bared the two projects will be the largest portfolio projects in Luzon, adding it will have a development cost of $2 million per MW.
Leviste further said the banks have been supportive and have been funding at least 70-percent debt.
However, he cannot provide the lead arranger of the banks, as he said Citicore Power is handling the financing aspect of the project.
However, Leviste pointed out the risks that some of the projects might not meet the Feed-in-Tariff (FIT) deadline on March 16 that will allow the projects to be paid at a rate of P8.69 per kilowatthour (kWh).
If unable to meet the FIT deadline, he said that solar could still be sold to “electric cooperatives (ECs) at a competitive rate.”
Leviste added their firm is seeking land across the country.
He explained they think solar energy will become even more attractive even without a subsidy by 2016 and will be cost competitive to coal-fired power generation.
Leviste pointed out the Renewable Portfolio Standards, which requires distribution utility to contract a certain portion of RE capacity, will also make solar more competitive.