CITICORE RENEWABLE Energy Corp. (CREC) has completed a $120-million (P6.8 billion) share subscription agreement with Indonesia’s state-owned PT Pertamina Power Indonesia (Pertamina NRE), the renewable energy developer said on Thursday.
The transaction involves Pertamina NRE’s subscription to a 20% interest in CREC, the company said in a media release.
Under the partnership, the two companies will jointly explore renewable energy investments in Indonesia, including the potential development of solar and wind power projects, as well as collaboration on carbon credit development and trading.
“With Pertamina NRE, we can view the energy transition through a different lens and create responsive, collaborative solutions for clean energy in the Philippines and Indonesia,” CREC President and Chief Executive Officer Oliver Tan said.
CREC, directly and through its subsidiaries and joint ventures, manages a diversified portfolio of renewable energy generation assets, power project development operations, and retail electricity supply services.
At present, the company has a combined gross installed capacity of 287 megawatts (MW) from its solar facilities in the Philippines. It also has four wind power projects with a total planned capacity of 803 MW.
“We are leading the charge in Indonesia’s renewable energy transition, and our partnership with Citicore, with their expertise and experience in RE development, is a way to elevate our capability in RE development, as well as a big step in accelerating our clean energy goals,” Pertamina NRE Chief Executive Officer John Anis said.
Mr. Anis said the company is committed to supporting CREC and the Philippines with its “own expertise, technology, and best practices.”
Energy Assistant Secretary Mylene C. Capongcol, who witnessed the signing, said the partnership will not only help advance clean energy targets but also signals the need for active support for energy cooperation and sustainable development in Southeast Asia.
“Both Indonesia and the Philippines share common energy concerns, being dependent on coal-fired power plants and seeking an orderly transition to cleaner technologies,” Ms. Capongcol said.
“A heightened level of cooperation between our countries offers potential benefits across economic, environmental, and geopolitical dimensions through collaboration on energy transition and renewable energy,” she added.
Pertamina NRE is a wholly owned subsidiary of Indonesia’s state-owned energy company Pertamina. It is responsible for managing all power generation and new and renewable energy development, focusing on gas-based power generation, geothermal energy, other renewable sources such as solar and wind, and green initiatives such as nature-based solutions and carbon-related businesses. — Sheldeen Joy Talavera