PetroSolar Corporation Secures ERC PAO-FIT Approval,Signs REPA with Transco

April 28, 2016

The Energy Regulatory Commission (ERC) released on April 27, 2016 the Provisional Approval to Operate as a Feed-in- Tariff eligible power plant (PAO-FIT) for PetroSolar Corporation’s (PetroSolar) 50 MWp Tarlac-1 Solar Power Project (Tarlac-1). The PAO-FIT release followed the Commission’s earlier approval of the same during its March 30 deliberations.

The Tarlac-1 solar facility covers 55 hectares of industrial land in the PEZA-registered Central Technopark in Tarlac City. It is the first solar energy plant of PetroSolar, a joint-venture company owned 56% by PetroGreen Energy Corporation (PGEC) and 44% by EEI Power Corporation. PGEC is the renewable energy subsidiary of publicly-listed PetroEnergy Resources Corporation (PERC).

PERC President Milagros V. Reyes announced “We are pleased by ERC’s release of the PAO-FIT for our 50MW Tarlac solar power facility, which is the third renewable energy power station we have put up in three years, after our 20 Maibarara geothermal project in 2014 and the 36 MW Nabas wind facility in 2015. The PAO-FIT approval effectively guarantees the FIT payment to PetroSolar and the financial viability of our investment. Our team’s ability to secure this critical regulatory approval mirrors the focus and dedication we put in completing the plant’s physical infrastructure in 4.5 months from the start of foundation works, a record in solar farm construction not just in the Philippines but in Southeast Asia.”

The Tarlac-1 solar project attained 80% electro-mechanical completion on December 23, 2015, was energized with feedback power on January 11, 2016, and started delivery of electricity to the Luzon grid on January 27, well ahead of the March 15, 2016 deadline for the current 500MW solar FIT allocation. On March 7, 2016, Department of Energy Secretary Zenaida Monsada signed the Certificate of Endorsement for Feed-in- Tariff Eligibility (COE-FIT) for PetroSolar’s Tarlac-1 facility with a commercial operation date of February 10, 2016.

PGEC Vice President and COO F.G. Delfin Jr. declared “With this ERC approval and the signing and execution last April 6 of our renewable energy payment agreement (REPA) with the National Transmission Corporation (TransCo), PetroSolar effectively secures our slot in the 500MW solar FIT allocation. This assures our Company and our lenders of revenue from FIT payment of Php 8.69/kwh from 2016 to 2036. In the meantime, we shall submit this PAO-FIT to Transco for the determination of our REPA’s effective date.”