BASIC ENERGY Corp. has finalized its joint development and shareholders’ agreement with Japanese renewable energy developer Renova, Inc., advancing their development of the 50-megawatt (MW) Mabini Wind Power Project in Batangas.
As a result of the closing, Renova officially becomes a partner in RDG Wind Energy Corp. (RWEC), contributing its expertise and resources to the wind power project, the listed energy company said in a media release on Monday.
Renova develops and operates renewable power plants utilizing existing energy resources in each region and provides decarbonization solutions in Japan and overseas.
“We are thrilled to collaborate with Renova on this important initiative,” Basic Energy said. “Together, we are dedicated to advancing the country’s renewable energy efforts, and we are confident that RWEC will play a pivotal role in meeting the Philippines’ growing energy demands.”
The finalization of the agreement comes after Basic Energy fulfilled the conditions precedent, “with certain items transitioning to conditions subsequent as mutually agreed by partners.”
Basic Energy and Renova incorporated representatives to the board of directors of RWEC, along with the establishment of a new management team consisting of key personnel from both companies.
In April last year, Basic Energy signed an agreement with Renova to form a joint venture on a 50:50 equity basis in RWEC (formerly Mabini Energy Corp.), the special purpose vehicle for the wind power project.
As a result of the deal, the companies will jointly develop a wind power project in Batangas with an estimated cost of around P5 billion.
RWEC completed its wind resource assessment, which indicated excellent wind conditions, and its wind turbine generator micrositing study, which showed significant potential for future capacity expansion.
The unit also obtained the approval of the National Grid Corp. of the Philippines for its system impact study, allowing the project to proceed with plans for grid interconnection and power delivery.
It obtained its wind energy service contract from the Department of Energy in 2021 to explore, develop, and operate a wind power plant for a period of 25 years.
The wind farm spans 4,860 hectares of land in Mabini, Batangas. It is slated for completion and commissioning by early 2028. — Sheldeen Joy Talavera