Citicore Renewable Energy and SMC Global Light Collaborate to Build 153.5 MW Solar Power Plant in the Philippines

Citicore Renewable Energy Corporation (CREC) announced a major joint venture with SMC Global Light and Power Corp. (SGLP) to develop, build and operate a 153.5 MW solar power plant in Barangay Lucanin, Mariveles, Bataan. The partnership was approved by CREC’s Board of Directors and solidified through the signing of an investment and shareholder agreement.

The partnership is intended to increase CREC’s attributable solar capacity, which is in line with the company’s goal to add approximately 1.0 GW of construction-ready or under-construction solar capacity per year over the next five years. Initially, CREC will hold a 49% stake in the special purpose entity (SPE) created for the project, while SGLP will hold 51%. Once the construction phase begins, ownership will be equalized to a 50-50 split between the two companies.

“This transaction will increase CREC’s energy capacity by approximately 76.75 MW, further demonstrating our commitment to renewable energy and supporting the country’s sustainable development goals,” said Danica C. Evangelista, CREC Corporate Secretary.

Key features of the joint venture include:

• Establishment of a special purpose vehicle for a solar power plant project.
• Subscription of additional shares by CREC during the construction phase to equalize ownership.
• The SPE’s board consists of six members, with each party appointing three directors.

The joint venture is subject to several conditions precedent, including the formation of an SPE, completion of due diligence, the assignment of SEOC by SGLP and obtaining necessary Department of Energy (DOE) approvals.

The solar power plant project underscores CREC and SGLP’s commitment to promoting renewable energy initiatives in the Philippines. This collaboration is expected to play a key role in the country’s journey to achieving renewable energy goals and reducing carbon emissions.

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