Mainstream and AboitizPower enter JV for initial 90 MW wind project
Mainstream Renewable Power today announces the signing of a joint venture agreement with Aboitiz Power Corporation (AboitizPower), via its subsidiary Aboitiz Renewables Inc. (ARI), one of the Philippines' leading providers of renewable energy, to initially deliver the 90 MW Libmanan onshore wind project located in the Camarines Sur Province.
The joint venture, which harnesses the combination of Mainstream’s global renewables development expertise and track record and AboitizPower’s extensive local presence and business network, will play a leading role in the Philippine Government’s drive to increase renewable generation in the country via the rapid expansion of its portfolio of wind and solar assets.
AboitizPower has a stated goal to grow its renewables portfolio to 4,600 MW by the end of the decade, and Mainstream is contributing to this via the Libmanan onshore wind project as well as a future development pipeline.
The 90 MW Libmanan onshore wind project is expected to reach financial close in 2023 and achieve commercial operations in 2025.
Mary Quaney, Chief Executive Officer of Mainstream Renewable Power, said: "We are delighted to be entering this joint venture with AboitizPower to deliver our first wind farm in the Philippines.
"This is one of Mainstream’s priority markets in the region, and we are committed to working in partnership with AboitizPower to support the Philippines’ ambitious target to cut its greenhouse gas emissions by 75 percent by 2030."
Emmanuel V. Rubio, Chief Executive Officer of AboitizPower, said: "This joint venture marks AboitizPower’s first foray into wind energy and underscores our aspiration to be a strong renewable energy partner. We are optimistic about the realisation of our renewable ambitions over the next decade, both domestically and internationally, while we continue to serve the critical baseload needs of the Philippine energy system."
James Arnold Villaroman, Chief Executive Officer of ARI, said: "We are excited to partner with Mainstream, given our shared aspiration of growing the Philippine renewable energy generation portfolio in the years to come. This is the beginning of an exciting new era for AboitizPower, through ARI, as we take a key step towards our 10-year strategy of growing our renewable energy capacity and striking a 50:50 balance between our renewable and thermal portfolios."
The joint venture, which is subject to regulatory approvals, is being delivered through an investment agreement for ARI’s proposed acquisition of a 60 percent stake in the Libmanan onshore wind project, which Mainstream has been developing since 2017 with its local partner.
Early this month, in a bid to draw more investors and end-users in renewable energy, the Department of Energy approved an increase in the yearly renewable portfolio standards from one percent to 2.5 percent .
The Philippine Government’s ambition is to generate 35 percent of all its electricity from renewables by 2030, and 50 per cent by 2040. The country has multiple strategies to achieve its targets including the Green Energy Option Program (GEOP), Renewable Portfolio Standard (RPS) and the recently launched Green Energy Auction Programme (GEAP). Renewable energy expansion is expected to play an important role in meeting the Philippines’ growing economy and electricity demand.
AboitizPower is the holding company for the Aboitiz Group's investments in power generation, distribution, and retail electricity services. It advances business and communities by providing reliable and ample power supply at a reasonable and competitive price, and with the least adverse effects on the environment and host communities.
The company is one of the largest power producers in the Philippines with a balanced portfolio of assets located across the country. It is a major producer of Cleanergy, the company’s brand for clean and renewable energy, with several hydroelectric, geothermal and solar power generation facilities. It also has thermal power plants in its generation portfolio to support the country’s baseload and peak energy demands.
The company also owns distribution utilities that operate in high-growth areas in Luzon, Visayas and Mindanao, including the country’s second- and third-largest private utilities.
AboitizPower, together with its partners, is the Philippines’ largest owner and operator of renewable energy based on installed capacity. In the next 10 years, the company will significantly expand its Cleanergy portfolio, in support of the government's efforts to promote renewable energy in the country. AboitizPower will build an additional 3,700 MW of renewable energy, growing its existing Cleanergy capacity threefold by 2030. Find out more on company's corporate website.