AC Energy has $1 billion war chest for expansion

Danessa Rivera (The Philippine Star) - December 9, 2019 - 12:00am

https://www.philstar.com/business/2019/12/09/1975352/ac-energy-has-1-billion-war-chest-expansion

MANILA, Philippines — AC Energy Inc., the Ayala Group’s power platform, is getting ready for massive investments next year with $1 billion in its war chest for new projects locally and abroad.

AC Energy president and CEO Eric Francia said the company has effectively raised $1.5 billion from the selldown of its AA Thermal asset, two bond issuances and stock rights offering under subsidiary AC energy Philippines.

“We’re really preparing for... because we have a strong platform both domestically and regionally for scaling up our renewables,” he said.

Of the $1.5 billion raised, around $500 million is already deployed and committed.

The $1 billion remaining will bankroll the construction of 1,500 megawatts (MW) in five markets namely Philippines, Vietnam, Australia, India and Myanmar next year.

“We are looking to build over 1,500 MW of attributable capacity for financial close by 2020. Twenty five percent of that ($1 billion) will be invested in the Philippines, 25 percent in Vietnam, 25 percent in Australia, and 25 percent in India, Myanmar and others,” he said.

“That’s why it’s a big year because we’ve never done 1,500 MW of new investments in one year,” Francia said.

Majority of the 1,500 MW to be built are renewables.

In the Philippines, AC Energy – through AC Energy Philippines – has committed to build 550 MW of new power plants next year.

Part of this committed capacity include the 180-MW solar plant in Alaminos, Laguna, 60-MW solar farm in Palauig, Zambales, and the 150-MW peaking plant in Pililia, Rizal.

In Australia, AC Energy is developing solar and pumped hydro power projects through 50-percent owned UPC/AC Renewables.

“Vietnam is majority wind because we are eyeing FIT for wind which has a November 2021 deadline. India is mostly sola. Myanmar is hybrid of mini-grids with solar-diesel-battery storage,” Francia said.

As of this month, AC Energy has a net attributable capacity of over 1,600 MW, of which 600 MW is from renewable sources.

The company is one of the fastest growing energy companies with over $1 billion of invested and committed equity in renewable and thermal energy in the Philippines and around the region. It aspires to achieve five gigawatts (GW) of attributable renewable energy capacity, and generate at least 50 percent of total energy output from renewables by 2025.

Last year, it generated 2,800 GW-hours of energy, of which 48 percent was from renewable sources.