Singapore-based company Nexif Energy has signed a long-term power supply agreement (PSA) with SN Aboitiz Power (SNAP) to retail electricity from its maiden solar power project in the Philippines.
Nexif Energy – a joint venture between Singapore-based Nexif and global investment firm Denham Capital – is building a 75-megawatt peak (MWp) PV facility in Calabanga, Camarines Sur.
Under the deal, SNAP will purchase most of the electricity and green certificates generated by Nexif Energy’s Calabanga solar farm for 10 years.
The deal will allow SNAP to further deepen its mark in the country’s retail electricity market, according to the company’s president and CEO Joseph Yu.
“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,” he said.
SNAP, a joint venture between Aboitiz Power Corp. And Norwegian SCATEC ASA, is an active player in the retail electricity supply (RES) market. It has over 3.5 gigawatts of capacity in its portfolio and owns over 600 MW of hydropower.
Nexif Energy has entered into engineering, procurement and construction (EPC), and operations and management (O&M) contracts with PowerChina Huadong Engineering Corp. And PowerChina Philippines Corp. For the construction and maintenance of the Calabanga project, which is expected to complete construction and start exporting electricity in the fourth quarter of 2022.
It continues 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.
With a strong pipeline of near-term growth opportunities, the company plans to replicate its approach at Calabanga for future projects, notably its 150-MWp solar farm under advanced development in Negros Occidental that is targeted to start construction next year.
Nexif founder and co-CEO Surender Singh said the PSA with SNAP proves that well-developed renewable energy projects in the Philippines have an additional avenue for power sales by supporting electricity retailers in the contestable market.
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’ four GW contestable retail market.
Nexif Energy’s portfolio has a total capacity of 3,620 MW (net) with 490 MW operational or under construction. This is seen to grow to 1.7 GW operational or under construction by 2023, and a further 1.9 GW at various stages of development.