SunScout and Alta Develop 87.5 MWp Solar-Plus-Storage Projects in the Philippines

en.Wedoany.com Reported - New Zealand energy investment firm SunScout Holding and Philippine renewable energy developer Alta Renewables have reached an understanding to develop four solar-plus-storage projects in the Philippines under a build-own-operate (BOO) model, with a total installed capacity of 87.5 megawatts peak (MWp).

Under the memorandum of understanding (MOU) signed by both parties, SunScout will fund the construction and retain ownership of the aforementioned projects, which will operate under 20-year fixed-tariff power supply agreements once commissioned. SunScout estimates an investment of approximately $87.5 million in this project portfolio, based on an estimated value of about $1 million per MWp. The target internal rate of return at the project level is at least 10%.

In terms of financing arrangements, SunScout plans to use project-level financing of approximately 70% debt after each plant achieves commercial operation, recycling most of the invested capital into new project development while retaining ownership.

The four projects serve different electric cooperatives: a 25 MWp project for Aklan Electric Cooperative (AKELCO), a 12.5 MWp project for First Laguna Electric Cooperative (FLECO), a 25 MWp project for the Iloilo III Electric Cooperative (ILECO III) area, and a 25 MWp project for Zambales II Electric Cooperative (ZAMECO II). All projects combine solar power generation with integrated renewable energy storage systems.

Regarding power purchase prices, AKELCO's fixed supply price is $0.097 per kWh (PHP 6), with a 20-year agreement term; FLECO's fixed price is $0.078 per kWh (PHP 4.85); ZAMECO II's fixed price is $0.094 per kWh (PHP 5.79); and ILECO III's indicative offtake terms are $0.093 per kWh (PHP 5.75) or above.

Alta Renewables has brought the projects to a shovel-ready stage by securing land rights, finalizing offtake terms, and advancing permitting approvals. The company will continue to serve as SunScout's joint development and operations and maintenance partner in the Philippines. Under the MOU, Alta Renewables has the option to co-invest up to a 33% equity stake in each project.

In terms of developer compensation, SunScout plans to pay Alta Renewables $100,000 per MWp, with 80% paid when the project reaches shovel-ready status and the remaining 20% paid after regulatory approval of the power supply agreements.

The two companies are also discussing additional BOO opportunities exceeding 230 MWp in the Philippines. The project pipeline includes approximately 25 MWp of additional capacity for ILECO III, a 25 MWp project with Capiz Electric Cooperative, and a 99 MWp project with Cagayan II Electric Cooperative.

SunScout Chairman and CEO Edwin Cywinski stated that this collaboration exemplifies best practices in the BOO model: Alta Renewables advances the projects to a construction-ready stage, SunScout provides construction funding, and then owns and operates the plants for 20 years under contractually agreed fixed-price agreements. Alta Renewables' John Michael Bernil noted that the partnership allows SunScout to assume construction funding while Alta Renewables continues to participate as an operating partner and equity co-investor.

The two companies plan to sign final project agreements around August 24, with financial close for the first project targeted for the fourth quarter. The MOU remains subject to due diligence, internal and board approvals, and the negotiation and execution of definitive agreements.

$1 = PHP 61.81.