Armstrong commits $29m to Philippines solar project

According to a release, the first project is a 6.25 megawatt ground-mounted and grid-connected solar power plant in the southern region of Mindanao. It is scheduled to begin construction this month and start commercial operations by December.

A bilateral power purchase agreement (PPA) has been established with the off-taker, South Cotabato I Electric Cooperative. When the project is completed, it is expected to be the world's largest diesel replacement power plant.

Armstrong's Singapore-based managing partner, Andrew Affleck, said the deal - the GP's first the Philippines - represents a benchmark for the development of diesel-offset projects globally and one which does not rely on subsidies by way of feed-in-tariffs.

"With the projected power deficit forecast for 2015 in the Philippines, this project can serve as a benchmark for clean and quick decentralized energy solutions without the need for government subsidies," he said.

Nv vogt is a joint venture set up in 2010 between German solar power developer Ib vogt and the founders of Indian development company APCA Power. The company focuses exclusively on solar power plant projects in the Philippines and Southeast Asia.

The investment - Armstrong's third this year - comes less than a month after the GP committed $22.5 million to a portfolio of Indonesia-based mini hydro-electric plants being developed by Inti Duta Energi, a subsidiary of Jakarta-listed construction company Nusa Konstruksi Enjiniring (NKE).

Prior to that is partnered with renewable energy developer The Blue Circle, commiting up to $40 million to support the construction of wind and solar projects in the Mekong region.

Armstrong closed its debut clean energy fund last November at $164 million.

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• Topics
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