MRC Allied teams up with MEEC for renewable energy projects

As published on Business World

The property developer, which has diversified into the energy sector, told the Philippine Stock Exchange on Thursday that it signed a Memorandum of Understanding (MoU) with MEEC -- a private corporation engaged in the business of exploration and development of renewable energy resources. “The purpose of the MoU is to confirm that both parties have an interest in developing renewable energy projects in the properties identified by MEEC as target or locations,” MRC Allied said in its brief regulatory filing.

Under the MoU, the property firm will conduct due diligence within 60 days “to allow the company to make a decision to pursue a project with MEEC.” MRC Allied and MEEC will also be bound by the terms of confidentiality while the MoU is in force and within one year thereafter. The property developer earlier set an ambitious target of putting up at least 1,000 megawatts (MW) of renewable energy in the next five years, noting this is the “perfect time” to venture into the energy sector due to rising demand for electricity, increasing target of RE capacity and the opportunity to buy existing power plants. This year, MRC Allied has an aggregate of 160 megawatts (MW) in solar capacity in the pipeline. The projects are in Clark Green City, Pampanga and in Naga City, Cebu, with a target installed capacity of 100 MW and 60 MW, respectively. To achieve the target, the company is looking to put up at least 200 MW of capacity every year until 2020. Shares in MRC closed at P0.380 apiece, down 1.30% from P0.385.