Thursday, October 20, 2016

Ayala energy unit doubles investment target to P80 B



By Danessa Rivera (The Philippine Star) | Updated October 20, 2016 - 12:00am

MANILA, Philippines – AC Energy Holdings Inc. is preparing to double its commitment in the power sector to nearly P80 billion through expansion of existing assets, acquisitions or partnerships, and greenfield projects here and abroad to reach its target portfolio of 2,000 megawatts (MW) by 2020.
By then, AC Energy hopes to become a major contributor to its parent firm Ayala Corp., its top official said yesterday.
The company has laid down three pillars to deliver an additional 1,000 MW in the next four years and part of that plan is expanding the capacity of its existing platforms, AC Energy president and CEO Eric Francia said in a media roundtable yesterday.
“The most natural for us is to expand all our platforms,” he said, noting almost all power plants under AC Energy’s umbrella have expansion potential.
By expanding existing power projects, the company has the potential to add 500 MW, Francia said.
So far, the Ayala group has committed close to P40 billion in AC Energy, which will be doubled to nearly P80 billion to meet the 2,000-MW target portfolio, the company official said.
Currently, AC Energy has a total attributable capacity of 1,088 MW with the start of construction for the 668-MW GN Power Dinginin Ltd. Co. coal plant in Bataan.
It also has stakes in the 604-MW GNPower Mariveles, the 2x135-MW coal-fired power plant in Calaca, Batangas under South Luzon Thermal Energy Corp. and the 4x135- MW coal-fired power plant in Kauswagan, Lanao del Norte in Mindanao through GN Power Kauswagan Ltd. Co.
Under renewables, AC Energy’s portfolio includes the 52-MW Northwind Power Development Corp. in Bangui, Ilocos Norte and the 81-MW wind farm in Pagudpud, Ilocos Norte through its affiliate North Luzon Renewable Energy Corp. and the 18-MW Monte Solar Energy Inc. (Montesol) plant in Negros Oriental—a joint undertaking with Bronzeoak Clean Energy Inc.
AC Energy will also be on the lookout for possible acquisitions of and partnerships for renewable or coal projects within and outside the country, the company official said.
“Second is we will continue to look for acquisitions, partnerships. The only difference is we will not only look in our shores, but regionally,” Francia said. “We will start looking at Indonesia. We’re also interested in looking more broadly in other parts of Southeast Asia, like Vietnam and Myanmar.”
The company official bared the company’s first venture in Indonesia, which is a wind project with less than 100 MW in capacity that will breakground in the next few months.
“We have an international partner, we also have a local partner. So it’s a three-way partnership with AC Energy owning 75 percent,” Francia said.
To further expand its portfolio, AC Energy will also venture into developing its own greenfield power projects.

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