BASIC Energy Corp. has signed a memorandum of understanding with Pangasinan 1 Electric Cooperative (Panelco I) for the conduct of distribution studies that could lead to a possible solar project.

The impact and asset studies will have a "twofold purpose," Basic Energy said.

"The first one is to assess the compatibility of Panelco I's transmission system and sub-stations to accommodate the solar power plant's production," it added.

"Secondly is to gain insights into the current state of the transmission system and to identify requisite improvements for optimal performance aligned with the solar power plant's energy production."

Basic Energy said it was developing a potential 50-megawatt (MW) solar power project, inclusive of a battery energy storage system (BESS), in Pangasinan.

The project will come in two phases, with 10 MW plus a BESS to start.

Basic Energy's share price fell by half a centavo, or 2.17 percent, to P0.225 on Thursday.