SP New Energy Corp. (SPNEC), a subsidiary of Meralco PowerGen Corp., is seeking a motion for reconsideration following the termination of its renewable energy service contract for a 280-megawatt solar project in Nueva Ecija.
The project was originally awarded under the government’s Green Energy Auction Program 1 (GEAP-1).
SPNEC said in a disclosure to the Philippine Stock Exchange on Wednesday that it received a notice of termination for the service contract of its Sta. Rosa project. The company had filed a notice of force majeure for the project last year.
The Sta. Rosa contract is among those terminated by the Department of Energy as the agency aims to weed out nonperforming contracts.
“The company is in discussions with the Department of Energy regarding said force majeure claim and intends to request for the reconsideration of the termination,” SPNEC said. “Pending the outcome of said discussions and request for reconsideration, no adverse impact is expected on the overall business, operations and financial condition of the company.”
SPNEC has been negotiating with the DOE since last year to relocate and reprice the Sta. Rosa Nueva Ecija 2 solar power project, citing force majeure due to transmission issues.
