Ayala energy firm investing in solar, hydro projects in Australia

Published August 14, 2019, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2019/08/14/ayala-energy-firm-investing-in-solar-hydro-projects-in-australia/

The energy investment arm of the Ayala group and its partner UPC Renewables will be investing in up to 500-megawatt solar installation in New South Wales and 250-MW pumped hydro projects in South Australia.

The scale of investments for these projects, according to Patrice R. Clausse, chief operating office of AC Energy International, will depend on the engineering, procurement and construction (EPC) contract that the company will eventually be tapping for the two ventures.

For the solar project in particular, he noted the company already has shortlist on the forthcoming selection of EPC contractor as well as the targeted lenders.

“It will be among the largest developments in Australia. We’re still finalizing the EPC, the leverage will depend on the EPC that we’ll have,” Clausse said.

As a rule of thumb, solar project developments in Australia are still at the level of US$1.0 million per megawatt; while for the targeted pumped hydro storage project, this is seen at US$2.0 million per megawatt.

AC Energy President and CEO Eric T. Francia emphasized that “Australia is an interesting market because the RE resource is fairly rich – capacity factors there are high.”

Relative to the targeted expansion ventures in Australia, the joint venture of UPC Renewables and AC Energy disclosed that it has entered into a “conditional purchase agreement for the acquisition of 51 percent interest in the Baroota pumped hydro and the Bridle track solar farm projects.”

After firming up this deal, the JV firm emphasized that it will “accelerate remaining development, fund construction and to retain long-term ownership of the projects.”

As noted, the Baroota pumped hydro project in Australia could be “a leading example of low-cost long hours energy storage providing firm generation that is needed in South Australia as well as in the wider National Electricity Market.”

The hydropower facility will comprise of two units at 125MW capacity each – and it will entail the construction of upper storage, penstock, pipeline and power station with the utilization of the existing South Australia water Baroota reservoir as lower storage.

In addition to the hydro development, there is also a 300MW approved solar installation that will be integrated into the project – called the Bridle track solar farm.