Ayala sees big power demand in next few years

Manila Standard Today

by Jenniffer B. Austria

Conglomerate Ayala Corp. said Monday there is still room for another major player in the power business due to an expected big demand in the next few years.

Ayala chairman Jaime Augusto Zobel de Ayala told a press briefing following an annual stockholders’ meeting that the company was interested in greenfield projects and power plants that the government would auction.

“We believe the capacity that the country needs is very large and we feel that there is an opportunity for us to come in and participate,” Ayala said.

He said the company planned to assemble a portfolio of power assets comprising of both renewable and traditional energy sources over the medium-term period.

“We are in the process of developing focused platforms across various technologies such as solar, wind, both large-scale and mini hydro as well as thermal energy with the intent of balancing cost of energy delivery with sustainable practices,” Zobel said.

The Ayala group in March acquired a 50-percent stake in NorthWind Power Development Corp. that owns a 33-megawatt wind farm in Bangui Bay, Ilocos Norte, its first foray in the power business.

The farm, with 20 wind turbines, was the first commercial wind farm established in Southeast Asia.

The Ayala group plans to build a portfolio of assets over 1,000 megawatts over the next five years.

The biggest players in the power sector right now are San Miguel group, the Lopez group and Aboitiz Power Corp.

The conglomerate is also venturing into infrastructure sector under the so-called public-private-partnership projects of the Aquino administration.

The conglomerate earlier expressed interest in the operation and management contract of Metro Rail Transit 3 and Light Rail Transit Line 1.

“We also remain engaged in the transportation infrastructure space and continue to evaluate opportunities space that allow us to evaluate the business proposition of our business units,” Ayala said.

The Ayala group, meanwhile, would keep its telecommunications business through Globe Telecom Inc. after Philippine Long Distance Telephone Co. acquired Digitel Telecommunications Philippines Inc.

“Absolutely there is no interest [to sell]. Together with our partner Singapore Telecom, we are interested in building up Globe to the kind of structure that is relevant to the environment,” Ayala said. “Even if there are changes in the structure in the industry, we remain excited about the whole industry moving forward.”