The Department of Energy on Tuesday awarded to SunAsia Energy Inc. and its partner, Macquarie Group’s Blueleaf Energy six solar energy operating contracts for the construction of floating solar projects with a capacity of 610.5 megawatts which would be the world’s largest.
The six contracts have a combined investment cost of $732.6 million (at $1.2 million per MW) with full completion eyed by 2025, company executives said.
The six solar floating contracts form part of the 10 contracts applied for by SunAsia and Blueleaf, bringing the combined capacity to 1.3 GW once approved, with an investment cost of about $1.5 billion to $1.7 billion, according to Blueleaf chief executive Raghuram Natarajan said.
“As an active investor in sustainable infrastructure in the Asia Pacific region, we believe the Philippines holds great potential to add significant renewable energy capacity to its energy mix and at the same time delivering green energy at an affordable cost compared to fossil fuels,” Natarajan said.
He said the removal of foreign ownership restrictions is an important step in attracting the much-needed foreign direct investments in the renewable energy.
“Following the signing of the SEOCs, we would like to cooperate with various stakeholders both in the public and private sector to ensure the successful development and build out of the project, that will not only contribute to the country’s RE goals but also spark green job growth locally during construction and the long-term operations of these floating solar projects and bring about notable benefits to the local community,” he said.
These solar facilities will be installed on the water surface of Laguna Lake, spanning the growing cities of Calamba, Sta Rosa and Cabuyao and the towns of Bay and Victoria.
Each contract has a 25-year operating period.
“The awarding of these contracts accelerates the implementation of the thrust of President Ferdinand Marcos, Jr. to develop indigenous and renewable sources of energy. It also represents an additional strategic investment and a firm commitment to strengthen the country’s renewable energy sector, especially the commercialization of floating solar as an emerging technology,” Energy Secretary Raphael Lotilla said.
SunAsia Energy president and chief executive Tetchi Capellan said land use is becoming a big issue for renewables.
“People are worrying about competing uses of land, and in some markets, you might struggle to find land. So, there is a strong incentive to build on water as the Philippines gears up for an ambitious 46 GW solar energy installations in 2040 and at the same time, increase power supply in the country,” Capellan said.
Lotilla led the turnover ceremony together with Capellan and Natarajan. Ambassadors Hae Kyong Yu of Australia and Gerard Ho Wei Wong of Singapore were present to witness the turnover.
Lotilla said these floating solar projects would provide cost-effective renewable energy production without having to occupy usable land mass that could otherwise be used for other important sectors such as agriculture.
Solar energy is a rapidly developing sector in the country, with increasing interest and investment in recent years.