Listed firm PetroEnergy Resources Corp. (PERC) has reallocated P174 million originally meant to further develop an existing wind farm in Aklan to set up a solar farm in Luzon because the latter would be quicker to develop and put into commercial operation.
In a disclosure to the Philippine Stock Exchange (PSE) on Friday, PERC said the amount of P174 million will now be used for its 50-megawatt (MW) Tarlac solar power project.
The amount was part of the P592.45 million net proceeds PERC raised through a stock rights offering (SRO) recently.
PetroGreen Energy Corp., PERC’s 90 percent subsidiary, on March 25 signed with the Department of Energy (DOE) Solar Energy Service Contract No. 2015- 03-115, covering a 486- hectare contract area in Tarlac City.
“After the conduct of due diligence studies, the proposed site was found to have nearly all the positive attributes for a solar farm,” said PERC.
PERC said the solar project is ready for immediate development and could be put into commercial operation within a shorter period.
In contrast, it said Phase 2 of the Nabas wind power project could only commence development by the fourth quarter of 2015 and be put into commercial operation by the fourth quarter of 2016.
“For this reason, the company’s management, with the approval of the board of directors, decided to reallocate the SRO proceeds previously intended for the Nabas project for the immediate development of the solar project,” said PERC.
PERC also allocated part of the net proceeds from the stock rights offer to the Maibarara Geothermal Project – Phase 2 and Gabon (Etame) project expansion activities.
At present, the company is operating wind and geothermal power plants in Luzon and the Visayas.
Through its subsidiary Petrowind Energy, Inc., the firm is currently operating a 16-MW wind farm in Nabas, Aklan Province and a 20-MW geothermal power plant in Sto. Tomas, Batangas through Maibarara Geothermal Inc. (MGI).