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Citicore inks new 3-year supply deal with Meralco subsidiary
Posted on February 26, 2022
Citicore Renewable Energy Corporation (CREC) has sealed a new three-year power supply agreement (PSA) with Cogent Energy, the retail electricity supplier (RES) unit of Clark Electric Distribution Corporation (CEDC).
CEDC, a subsidiary of Manila Electric Company (Meralco), is the power distribution utility servicing the electricity needs of locators at the Clark special economic zone in Pampanga, which is now the pivot for investments north of Manila.
“Apart from sharing the same vision of delivering green energy, Cogent tapped CREC as a renewable energy partner to ensure a stable and reliable energy supply to the Luzon grid, especially within Clark and other areas in Pampanga,” Citicore noted in a media statement.
Offtaker-firm Cogent Energy is a licensed RES by the Energy Regulatory Commission (ERC) and a well-entrenched player in the retail competition and open access (RCOA) space of the restructured power sector – the sphere where consumers are regarded “kings” when it comes to their preferred suppliers as well as on volume and cost-contracting inclinations.
Citicore narrated that the initial contract between the parties had been on a short-term basis; then it was extended with a longer maturity of three years – and the renewed contract calls for the delivery of 2.0 to 5.0 megawatts of capacity to Cogent Energy.
Oliver Tan, president and CEO of CREC, asserted that the company’s “end-to-end value chain and vertical integration allows us to operate more efficiently and provide more flexibility that work better with clients.”
He cited the company’s standing as “among the early birds in the solar power business and for the past six years, we were able to sharpen our expertise of developing greenfield projects, from design, procurement, construction, up to plant operation and maintenance of solar power plants.”
The supply of power to the RES arm of the CEDC, according to the company, reflects its wider presence in the ecozone — as CREC is also the parent firm of the Citicore Solar Clark venture, which is sited in the freeport.
“CREC not only expands coverage and improves access to renewable energy but also helps address the growing demand in Luzon through more efficient and cleaner energy sources,” the power firm said.
In the next two years, as the company accelerates on its capacity shoring up to 1,500MW portfolio, Citicore will also be cementing its goal to become one of the top-tier players in the flourishing renewable energy (RE) sector.
CREC’s vigorous investment trajectory, as emphasized by Tan, shall be pursued in tandem with the drive at “scaling up our AgroSolar farm operations by offering a wide range of employment and livelihood opportunities to our farmer communities.”
Through that project development strategy, he stressed that “we hope to integrate modernization and inclusivity across areas with strong infrastructure developments and an abundant agriculture sector.”