Ayala buys into wind farm

Manila Times.net

By Krista Angela M. Montealegre, Reporter

AYALA Corp. (AC) has beefed up its investment in the power sector with the acquisition of a significant interest in the operator of the Ilocos Norte wind farm.

In a disclosure to the Philippine Stock Exchange, the Philippine’s oldest conglomerate said its wholly owned subsidiary Michigan Power Inc. obtained a 50-percent stake in NorthWind Power Development Corp. from existing shareholders.

The acquisition would cost approximately P512 million North Wind owns and operates 20 wind turbines with a capacity of 33 megawatts in Bangui Bay, Ilocos Norte. It is the first commercial wind farm established in Southeast Asia.

“Our goal over the next five years is to build a portfolio of power generation assets of over 1,000 megawatts, which include both renewable and traditional forms of energy sources,” said Fernando Zobel de Ayala, AC president and chief operating officer.

“We believe there are opportunities to make early stage investments in the renewable energy space which may have the potential to grow over time given the need to develop alternative sources of energy,” Zobel de Ayala added.

The conglomerate is also developing platforms for a possible venture into hydroelectric power, he said.

The wind farm investment is part of the conglomerate’s initiative to enter the power sector, following its recent join venture with Mitsubishi Corp. on solar energy.

Michigan Power and Diamond Generating Asia Ltd., a wholly owned subsidiary of Mitsubishi, formed a separate vehicle, PhilNewEnergy Inc., which would undertake the exploration and pre-development of possible solar power projects.

AC expects capital expenditure this year to hit P79 billion, 21 percent more than in 2010, underlining the conglomerate’s optimism in the country’s renewed growth prospects.

Its net income attributable to equity holders grew 37 percent to P11.2 billion last year from a flat growth of P8.15 billion in 2009 on the back of the record performance of its real estate, banking, water, and automotive business units.

AC shares fell to P349 on Thursday from P355 on Friday.