Citicore Renewable Energy Corp (CREC) said Monday it is looking at a $1-billion capital expenditure budget for 2025 to expand its renewable energy portfolio.
“Total capex for 2025 would roughly be around north of $1 billion. Most of them has already been spent in early parts of the year. This goes to the one gigawatt that will be energized before end of the year,” CREC president and chief executive Oliver Tan said during the company’s annual stockholders’ meeting.
“The balance will be spent for the second batch or the second gigawatt that we will break ground towards the second half of the year,” Tan said.
He said the company expects to energize another 1 gigawatt before the end of 2025.
Tan said CREC has a strong competitive edge against other solar players. “CREC takes pride in its vertical integrated business model. We are an RE developer. At the same time, we have an in-house engineering procurement and construction arm,” he said.
Meanwhile, Citicore Renewable Energy REIT Corp (CREIT) is set to acquire about 250 megawatts (MW) of operational solar assets by the end of 2025.
Tan, who is also the president and chief executive of CREIT, said the assets would be acquired from CREC, CREIT’s sponsor.
The acquisition is expected to positively impact dividends, consistent with CREIT’s strategy of expanding its renewable energy asset portfolio to boost shareholder value.
He said the first batch of the acquisitions would include solar plant facilities, as the land on which they are built is already owned by CREIT.
“We are aiming to acquire the first batch of 250 MW worth of solar assets on or before year-end. We are waiting for the successful commissioning of these plants and securing the necessary regulatory approvals,” he said.
Tan said the newly-built solar plants, including those on land acquired by CREIT in 2023, are expected to become operational between the third and fourth quarters of 2025.
Tan said any new land acquisition related to CREIT’s second gigawatt of solar capacity would require new fundraising efforts, which are likely to be pursued next year.
“We will first complete the acquisition of batch one before any plans of acquiring new properties,” he said.
Tan, in his report, reiterated the company’s vision to be the foremost energy REIT investment in the Philippines, delivering superior yields from a portfolio of sustainable prime land and solar assets.