Nexif Energy Secures Power Supply Agreement with SN Aboitiz Power for its 75 MWp Solar PV Project in the Philippines| Sustainable Infrastructure
NEXIF ENERGY SECURES POWER SUPPLY AGREEMENT WITH SN ABOITIZ POWER FOR ITS 75 MWp SOLAR PV PROJECT IN THE PHILIPPINES
Singapore/Manila, Philippines 11 October 2021 – Nexif Energy, the Asian and Australian power company, has signed a long-term power supply agreement (PSA) with SN Aboitiz Power (SNAP) for its maiden solar farm in the Philippines, a 75-megawatt peak (MWp) PV facility to be constructed in Calabanga, Camarines Sur province.
Under the agreement, SNAP, a leading renewable energy provider in the Philippines’ power market, will purchase most of the electricity and green certificates generated by Nexif Energy’s Calabanga solar farm for ten years.
Since the availability of the Philippines’ Feed in Tariff scheme for new projects ended in 2016 – new solar farm capacity has been slow to come on-line. However, Nexif Energy’s innovative approach to the PSA for the Calabanga project has proven to be a solution to this challenge, with competitive, new renewable energy being delivered to the Philippines’ 4-gigawatt (GW) contestable retail market.
With a strong pipeline of near-term growth opportunities, Nexif Energy plans to replicate its approach at Calabanga for future projects, notably its 150MWp solar farm under advanced development in Negros Occidental, Visayas. Nexif Energy is continuing to expand its footprint in the Philippines and looks forward to accelerating low-carbon development and the growth of the country’s retail electricity market.
Nexif Energy has entered into EPC and O&M contracts with PowerChina Huadong Engineering Corporation and PowerChina Philippines Corporation for the construction and maintenance of the Calabanga project, which is expected to complete construction and start exporting electricity in Q4 2022.
SNAP is a joint venture between Aboitiz Power Corporation, a premier power company in the Philippines, and SCATEC ASA, a Norwegian renewable power producer with over 3.5 GW of capacity in its portfolio. SNAP owns over 600 megawatts (MW) of hydropower capacity and is an active player in the retail electricity supply (RES) market.
Matthew Bartley, Founder and Co-Chief Executive Officer of Nexif Energy, said: “Nexif Energy is delighted to enter into this partnership with SNAP on the Calabanga project, and we look forward to a long and mutually beneficial relationship. Through this innovative PSA, we are offering SNAP a competitive advantage in serving its customers in the Philippines’ contestable retail electricity supply market. We are pleased to contribute to sustainable economic development in the Camarines Sur province and to the acceleration of the renewable energy market in the Philippines.”
Joseph Yu, President and Chief Executive Officer of SNAP, said: “This is a significant milestone for us. In addition to being our first long-term PSA, this agreement strengthens our position in providing our customers with responsible energy. The additional power to be supplied by Nexif Energy’s Calabanga solar project will help us sustainably support our growing list of contestable customers.”
Nexif Founder and Co-Chief Executive Officer, Surender Singh added: “This PSA with SNAP proves that well-developed renewable energy projects in the Philippines have an additional avenue for power sales through supporting electricity retailers in the contestable market. We look forward to further supporting the contestable market in addition to participating in Competitive Selection Processes (CSP) for the regulated market and the Government’s upcoming Green Energy Auction Program. We have a very favourable outlook on the Philippines’ power sector and are committed to facilitating the growth of the solar and wind industries in the country.”
Denham Capital Managing Director, Saurabh Anand, commented: “We are extremely proud of the role that Nexif Energy is playing in the development of the Philippines’ power sector. By signing this PSA with SNAP, Nexif Energy is not only enabling the growth of the country’s retail electricity market, but also advancing the energy transition through the provision of renewable power. Projects such asthe Calabanga solar farm are perfectly aligned with Denham’s vision of sustainable growth and long-term value creation.”
Nexif Energy’s portfolio has a total capacity of c. 3,620 MW (net) with c. 490 MW operational or under construction at present, growing to c. 1.7 GW operational or under construction by 2023, and a further c. 1.9 GW at various stages of development.
About Nexif Energy
Nexif Energy was established in August 2015 by Nexif, a Singapore-based independent power management company, and Denham Capital. The company aims to develop, finance, construct and opportunistically acquire conventional and renewable power generation assets across Australia and South-East Asia. For more information, visit: www.nexifenergy.com
About Denham Capital
Founded in 2004, Denham Capital is a global sustainable infrastructure, energy and resources focused investment firm, with more than $10 billion of invested and committed capital across multiple fund vehicles since inception. Specializing in both private equity and credit facilities, Denham invests in sectors that are essential to economic growth. Denham’s investments help deliver the sustainable infrastructure, energy and mineral resources needed for everyday life. The Denham team comprises highly skilled sector specialists with expertise that enables Denham to build, develop and exit valuable renewable power, energy storage, water infrastructure and resources assets. With an ongoing focus on opportunities in the global energy transition, Denham recognizes the need to build a low carbon economy and seeks to invest increasingly in companies and projects which share our vision for sustainable growth and long-term value creation. For more information, please visit: https://www.denhamcapital.com/sustainable-infrastructure/
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