The Market Monitor Minding the Nation's Business
Manila Water signed a power purchase agreement (PPA) with solar power company MSpectrum at Manila Water’s Main Office in Quezon City, early this month in pursuit for a sustainable energy consumption program.
The PPA — which involves MSpectrum installing the Phase 2 solar power project of Manila Water at 10 facilities — is part of the water company’s efforts to meet its Environment, Social, and Governance (ESG) goals and to align with its Energy Masterplan and Outlook. MSpectrum’s construction of the solar power facilities will start in the first quarter of 2025.
The 4.271-megawatt power (MWp) solar project is expected to generate 6.2 million kilowatt-hours (MkWh) annually.
These renewable power systems will effectively reduce Manila Water’s grid demand to the equivalent consumption of 2,600 households (at 200 kilowatt-hours per month).
The 4.271-megawatt power (MWp) solar project is expected to generate 6.2 million kilowatt-hours (MkWh) annually.
These renewable power systems will effectively reduce Manila Water’s grid demand to the equivalent consumption of 2,600 households (at 200 kilowatt-hours per month).
Signing the agreement were Manila Water President and Chief Executive Officer (CEO) Jocot de Dios, Manila Water East Zone Chief Operating Officer (COO) Arnold Mortera, MSpectrum President and CEO Cecilia Domingo, and MSpectrum Chief Operating Officer Patrick Panlilio.
“About two and a half years ago, we started trying to germinate the idea of having solar [energy] inside the fence because it’s the responsible thing to do. It makes sense not just for the environment and sustainability, but because power is a very large component of our operating expenses,” De Dios said during the signing ceremony.
This move to add more solar power to the company’s energy mix is projected to mitigate around 4,400 tons of carbon dioxide emissions annually, highlighting Manila Water’s commitment to sustainable and renewable energy.
Earlier this year, Manila Water started the installation of Phase 1 solar power systems at three facilities: the Cardona Treatment Plant, the East La Mesa Treatment Plant, and the San Juan Compound. With a total capacity of 2.5 MWp, the estimated solar power generation of these installations is 3.6 MkWh/year.
These facilities will not only deload the power grid; they will also reduce greenhouse gas emissions by approximately 2,564 tons of CO2 equivalent (CO2e) annually.
A member of the Meralco Group, MSpectrum is a renewable energy company in the Philippines that provides market-leading solar solutions to partner organizations.
nding shares.
The offering was arranged by BPI Capital Corporation and UBS AG Singapore Branch, with demand from both local and international institutional investors pushing the deal beyond the initially planned 50 million shares.
The transaction, which was oversubscribed multiple times, saw the shares placed with qualified institutional buyers in the United States, as well as in private transactions within the Philippines, complying with exemptions under the Securities Regulation Code.
The proceeds from the sale will be settled on December 12, 2024, under the terms of the placement agreement. Ayala Land and AREIT are expected to submit a reinvestment plan detailing the allocation of the funds.
The share sale is essential to comply with the minimum public ownership requirements set by the REIT Law.
ALI must raise AREIT’s free float before proceeding with an asset infusion, as the infusion is expected to lower the public float by increasing ALI’s ownership in the company.