Friday, May 24, 2019

Ayala to expand PH solar capacity by 200MW more


Published By Myrna M. Velasco

The renewable energy investment platform of the Ayala group is cementing capacity boost of 200 megawatts (MW)for its solar portfolio in the Philippines, chiefly for sites that it has secured in the Luzon grid.
AC Energy President and CEO Eric T. Francia told reporters “in the near term, we’re looking at construction in the next 12-18 months somewhere between 100-200MW that we can start just to get the ball rolling.”
He said the company’s focus will be on smaller capacities for now – initially on expansion of solar installations, then next will be in wind farm developments.
“That’s pure RE that we’re looking at in the near term where we hope to break ground soon – that’s in the Philippines. Over a 100MW is what we use to start construction,” Francia stressed.
He added that their investment track will be “mostly solar” for now; and “hopefully wind will follow also in the next couple of years.”
The installation paradigm, he expounded, shall be along different sites in Luzon grid at scale that could range at 50 to 100 megawatts per farm.
“We’ll do it on a portfolio basis… there are some grid constraints also that’s why we need to spread out the renewable capacities,” he said, adding that the specific project siting will come to view “when we’re able.”
Francia emphasized their next RE developments will likewise be bankrolled by fraction of the proceeds of the company’s green bond issuance early this year. For that tap facility, the company raised US$410 million.
“Part of equity financing will come from the bonds and we are also open to some project finance or we can do equity financing also. We have the flexibility,” the Ayala firm executive stressed.
He further indicated “definitely, a lot of our RE projects will be funded through the green bonds,” highlighting that even their offshore market developments will partly lean on that.
The Philippines is not just the core market that the Ayala group has been rolling out its investments on – it has also immersed itself as well-entrenched player in the RE spaces of Vietnam and Indonesia.
Vietnam is particularly an “exciting market” for the Ayala company at this point given the flourishing feed-in-tariff (FIT) incentive scheme being dangled by that country to the investors; while FIT honeymoon in the Philippines had already been over.

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