Solar PPAs surging in Southeast Asia
Malakoff and MMC Group have agreed to deploy 500 MW of solar in Malaysia, while Citicore has agreed to supply 7.5 MW of solar to utility Clark Electric Distribution Corp. in the Philippines.
A pair of power purchase agreement (PPA) announcements in Southeast Asia signal the region is further plugging itself into solar power.
Malakoff, a major independent power producer (IPP) based in Kuala Lumpur, has signed a memorandum of understanding with MMC Group to potentially provide 500 MW of solar capacity. Malakoff will be responsible for development, installation, operation, and maintenance, while MMC Ports will be the end user.
The deal is aligned with Malaysia’s increasing focus on renewable technologies, as evidenced by initiatives like the Large-Scale Solar (LSS) Procurement Scheme.
In the Philippines, Citicore, a renewables company based in San Juan City, has entered into a one-year PPA with Clark Electric Distribution Corp (CEDC). Under the PPA, Citicore will supply the utility with 7.5 MW from two power plants located in Tarlac, central Luzon, with a combined capacity of 15 MW.
The agreement is expected to expand into a 10-year contract once Citicore’s 60 MW Bato solar plant in Zambales goes online. Citicore has plans for aggressive solar expansion, with four additional projects slated for development on Luzon Island.
The developments are supported by Citicore securing a $100 million loan from Singapore-based debt financing firm Pentagreen Capital, with a portion of the funding allocated for the construction of solar plants in Batangas, in the country’s north.
The Philippines aims to install 15 GW of clean energy by 2030, with a focus on minigrids and standalone clean power systems due to the country’s archipelagic nature, according to a 2022 report by the International Renewable Energy Agency (IRENA).
The Philippines plans to install 15 GW of clean energy by 2030. However, large-scale solar arrays may be difficult to roll out, leaving most of the heavy lifting to minigrids and standalone clean power kids, according to a 2022 report by the International Renewable Energy Agency (IRENA).