Terra Solar boosts SPNEC ’23 income

SP New Energy Corp. (SPNEC), the listed renewable energy company now chaired by Manuel V. Pangilinan, reported a net income of P5.7 billion last year.

The increase in income was driven by a gain on full ownership in Terra Solar Philippines, the company said.

SPNEC’S assets also grew to P51.2 billion as of December 31, up by nine times from P5.8 billion as of December 31, 2022.

SPNEC’S equity also rose to P42.4 billion as of December 31, up eight times from P5.8 billion in equity as of December 3 1, 2022.

This marks SPNEC’S first financial report following the entry of Pangilinan-led Manila Electric Co. (Meralco) in the company.

The numbers reflect the growth resulting from Meralco’s investment in SPNEC, as it gears up to build the P200-billion Terra Solar project, it said.

In December last year, Mgen Renewable Energy (Mgreen) completed its P15.9-billion investment resulting in a 50.5-percent voting interest in SPNEC.

In January, Mgreen also acquired 2.17 billion shares of SPNEC from Solar Philippines Power Project Holdings Inc. for P2.5 billion.

Mgreen is a wholly-owned subsidiary of Meralco Powergen Corp., which in turn is a wholly-owned subsidiary of Meralco, the country’s largest power distributor whose parent firm is Pangilinan’s Metro Pacific Investments Corp.

Solar Philippines, founded by businessman Leandro Leviste, continues to own 18.99 billion shares of SPNEC, with other shareholders and the public owning the remaining shares.

SPNEC’S Terra Solar has been referred to as the world’s largest solar project, which is targeted to begin operations by 2026.

Terra Solar’s P200-billion solar developments in Nueva Ecija and Bulacan will consist of 3,500 megawatts of solar panels and 4,000 megawatt-hours of battery storage.

To support these developments, as of December 31, SPNEC has secured 3,431 hectares of land for development, comprising 2,976 hectares purchased and 454.9 hectares leased.

Aside from its developments around Nueva Ecija, SPNEC also owns and operates a 63-MW solar farm in Calatagan, Batangas and a 150 MW solar farm in Concepcion, Tarlac. For the full year 2023, these operating assets generated P1.1 billion in revenues.