Philippines firm and Chinese firm link up to ink MoU to explore renewable energy opportunities
Philippines-based property development firm MRC Allied and China-based engineering group Guangdong Power Engineering Co. (GPEC) signed a memorandum of understanding (MoU) to explore opportunities in the renewable energy sector.
“The purpose of the MOU is to confirm that both parties have an interest in developing renewable-energy projects in the Philippines as identified by MRC Allied,” stated a company disclosure.
Under the agreement, GPEC will conduct a due diligence for a period of one year after the MOU signing.
The purpose of the due diligence is to help GPEC decide whether to pursue renewable energy projects with MRC Allied.
In addition to this, the parties are bound by the terms and confidentiality while the agreement is in force and within one year thereafter.
GPEC, a foreign company based in Guangzhou, China, is engaged in the business of exploration, development and construction of energy projects.
Philippines power industry
MRC Allied is diversifying into the energy sector, particularly renewable energy. Nalda has said that the company plans to put up at least 1,000MW of renewable energy in the next five years.
“In line with our vision to be one of the major players in the Philippine power industry, we plan to develop at least 1,000MW of clean and renewable energy by 2022,” Nalda said.
For this year MRC Allied has an aggregate of 160MW solar capacity in the pipeline. These are in Clark Green City, Pampanga, and in Naga City, Cebu, with a target installed capacity of 100MW and 60MW, respectively.
Separately, MRC Allied entered into a similar agreement with Merge Energy and Environment Corp. (MEEC).
It described MEEC as “a domestic private corporation engaged in the business of exploration and development of renewable energy resources such as but not limited to biomass, geothermal, oil and gas”.
MRC Allied company president Gladys N. Nalda previously said that MRC Allied was looking at “orphan” plants or those that failed to secure a guaranteed feed-in-tariff (FiT) in the race to subscribe to the installation target set by the Department of Energy for solar, wind, biomass and run-of-river hydroelectric power projects.
Last June, MRC Allied said its board implemented a P1-billion private placement and offered preferred shares to increase the company’s authorised capital stock.
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