CREC to spend $800mln capex this year: Philippines

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Citicore Renewable Energy Corp. (CREC) is preparing to spend $800 million in capital expenditures this year for the development of solar projects with a total capacity of one gigawatt (GW).

CREC president and CEO Oliver Tan said the capex would be used for new and expansion projects in Batangas, Pampanga and Tarlac.

'The target is to break ground one GW of new projects this year, so meaning by early next year we will have almost 1.25-GW of installed capacity,' Tan said.

CREC is lining up five-GW of new solar projects within five years, or until 2027.

'We are upgrading our pipeline projects from originally 1.5-GW to 5,000-MW. We're targeting one-GW for this year and then every year will be commissioning at minimum one GW every year. So we will add much needed power supply to the market,' Tan said.

Tan said CREC's near term portfolio is focused on solar, but it would eventually include hydro and wind projects in the medium to long term.

'Short term would be solar because of the fast turnaround, very quick to build, and we will diversify or mix it with hydro and wind, such that so we'll be able to expand our market reach,' he said.

CREC has started construction of its first hydro project in Ilagan, Isabela, which has a capacity of 19.7 MW. The project is eyed for commissioning by 2026.

'So once we get the feel it is easy to expand because Ilagan river is very big. Once successful, it can easily be expanded from 19.7 MW to probably three times that size using the same Ilagan river. By 2030, maybe around 100 MW,' Tan said.

For offshore wind projects, meanwhile, CREC has secured seven wind service contracts from the Department of Energy totaling to a potential three GW.

Three of these are in North Luzon, two are in Guimaras Strait and another two are in Western Zambales.

Tan said the company was in talks with several interested foreign investors for the offshore wind projects given the high capex required.

'Offshore wind will take time because it takes seven to eight years to develop,' he said.

'For wind, so I would say hopefully, we could have at least two by 2030, that would easily be around 700 megawatts,' Tan said.

Meanwhile, CREC is pushing through with its planned initial public offering (IPO) this year.

Tan said CREC would file the IPO in the second quarter, with the listing to be completed within the year.

Tan said it would be a 'blockbuster' offering. 'Give us two to three months, we will have more info on the IPO,' he said.

Proceeds of the planned IPO will support CREC's plan to grow its solar portfolio to five GW within five years, in which one GW would require a capex of $800 million.