AC Energy approves financing for P10 billion renewable projects

Danessa Rivera (The Philippine Star) - December 18, 2020 - 12:00am
https://www.philstar.com/business/2020/12/18/2064512/ac-energy-approves-financing-p10-billion-renewable-projects

MANILA, Philippines — AC Energy Philippines Inc. has cleared financing for its solar and wind projects worth P10 billion, slated for construction early next year.

In a disclosure to the Philippine Stock Exchange yesterday, AC Energy Philippines said its board approved to fully finance the construction of a solar plant project to be built in Arayat and Mexico, Pampanga worth P3.33 billion through a secured loan.

The company earlier said the Pampanga solar farm, a 50-50 joint venture with Citicore Renewable Energy Corp., would have a capacity of up to 75 megawatts (MW).

The facility is expected to start generating power in the fourth quarter of 2021.

Meanwhile, the company’s board also cleared 70 percent of financing for the P7.48-billion wind farm project in Pagudpud, Ilocos Norte.

In a text message, AC Energy Philippines president and CEO Eric Francia said funding for the wind project would be covered by the company.

He said the wind project, which is near its existing 81-MW wind project under North Luzon Renewables, would have a capacity of 160 MW.

Both plants are part of AC Energy Philippines’ plan to put up 500 MW next year.

“These are part of the 500 MW. Early 2021 [is the] target construction start,” Francia said.

The company earlier announced plans to construct an additional 500 MW next year, on top of the 180 MW being constructed this year, as part of efforts to raise the country’s renewables capacity to 35 percent by 2025.

The new projects will allow the Ayala-led firm to take part in the Renewable Portfolio Standards (RPS).

RPS is a market-based policy that requires power distribution utilities (DUs), electric cooperatives, and retail electricity supplies (RES) to source an agreed portion of their energy supply from eligible renewable energy RE facilities.

It is among the measures under the Renewable Energy (RE) Act of 2008 to raise the renewable energy production and meet renewables targets. The country is targeting a 35 percent RE share in the power generation mix by 2030.

AC Energy, the energy platform of Ayala Corp., is one of the fastest growing energy companies with over $1 billion of invested and committed equity in renewable and thermal energy in the Philippines and around the region.

The company aims to exceed five gigawatts of attributable capacity and generate at least 50 percent of energy from renewables by 2025.