AC Energy to spend $300 M this year for expansion program

Danessa Rivera (The Philippine Star) - April 9, 2018 - 12:00am

https://www.philstar.com/business/2018/04/09/1804056/ac-energy-spend-300-m-year-expansion-program

MANILA, Philippines — AC Energy, the power business of Ayala Corp., is spending $300 million this year mostly to support its expansion program, its top official said.

The capital expenditure, which is equivalent to roughly P15 billion, will be focused on the completion of its ongoing power plant developments, AC Energy CEO Eric Francia said in a text message.

“The bulk of the $300 million is for committed capex for our Mindanao and Bataan plants under construction,” he said.

In peso terms, this year’s budget is lower compared to last year wherein parent firm Ayala Corp. poured in P21 billion in its power unit.

AC Energy targets to start operating the first unit of its 4x135- MW (megawatt) coal-fired power plant in Kauswagan, Lanao del Norte in Mindanao through GN Power Kauswagan Ltd. Co. (GNPK) in the second half of 2018.

GNPK is a limited partnership among AC Energy, the Philippine Investment Alliance for Infrastructure (PINAI) and Power Partners Ltd. Co.

In 2019, the first unit of the 2x668-MW GN Power Dinginin Ltd. Co. coal plant in Bataan is targeted for commercial operations. Meanwhile, the second unit is scheduled for completion by 2020.

GNPD is a limited partnership among AC Energy with a 50 percent stake, Aboitiz unit Therma Power Inc. also with roughly 50 percent equity and Power Partners Ltd. Co. for the balance.

Overseas, AC Energy has completed its first wind project in Sulawesi, Indonesia in partnership with UPC Renewables Indonesia Ltd. The 75-MW wind farm under project company PT UPC Sidrap Bayu Energi started commercial operations in the first quarter.

The Ayala power unit is also developing an initial 30 MW solar farm in Vietnam. It has teamed up with BIM Group of Vietnam to jointly develop over 300 MW of solar power projects in Ninh Thuan province.

All these new projects have brought AC Energy’s attributable capacity to over 1,600 MW, closer to its 2,000-MW target by 2020.

Just last week, AC Energy announced plans to ramp up capacity target to 5,000 MW by 2025.

“Our goal is to exceed five gigawatts (GW) of capacity by 2025. We will do this by growing both in the Philippines and around the region,” Francia said earlier.

The company official said the 5-GW goal would require over $2 billion in equity.