ERC approves NGCP’s P13-billion Pasay substation

By Lenie Lectura - October 1, 2019

https://businessmirror.com.ph/2019/10/01/erc-approves-ngcps-p13-billion-pasay-substation/

THE Energy Regulatory Commission (ERC) approved the application of the National Grid Corp. of the Philippines (NGCP) to pursue its P13-billion substation within the Reclamation Area in Pasay City.

The Pasay substation involves a new drawdown substation that will have an initial capacity of two 300 MVA (Mega Volt Amp) transformers which will be connected to the Las Piñas 230-kV (kilovolt)  substation. The project will be funded through the NGCP’s Internal Cash Generated (ICG) fund.

“The new NGCP substation in Pasay will provide solution to the overloading problem and will allow more room for capacity expansion in the future,” ERC Chairman and CEO Agnes VST Devanadera said.

The NGCP proposed the development of the Pasay 230-kV substation because the Las Piñas substation could no longer be expanded due to space constraint.  The Pasay substation’s additional equipment will cater to the future connections of the Manila-Navotas substation project, and the proposed Bataan-Cavite/Metro Manila Line Project.

“The Pasay 230-kV substation, upon full operation, is expected to relieve the loading conditions of the Las Piñas 230-kV substation, allow the service of additional capacity to the southern part of Metro Manila, and further enhance the integrity of the transmission system of the said region,” said NGCP.

Under the Electric Power Industry Reform Act (Epira), the NGCP is mandated to improve and expand its transmission facilities, consistent with the Grid Code and the Transmission Development Plan (TDP) to adequately serve generation companies, distribution utilities and suppliers that require transmission service and/or ancillary services through the transmission system.

“This NGCP Pasay Substation Project will help address the country’s growing power demand in terms of ensuring grid security, reliability and power quality,” Devanadera added.

NGCP said this is the most feasible way to deal with the load growth in Metro Manila, to relieve the heavy loading of the transformer at the Las Piñas 230-kV substation and to provide for more room for future capacity expansion.

The Social Security System (SSS) and the National Transmission Corp. (Transco) earlier opposed NGCP’s application.

SSS alleged that NGCP only needs 2,000 square meters for its project, in contrast to the 60,872 square meters which NGCP sought to be expropriated from SSS for the same project.

Transco opposed the project because, in its view, the NGCP has acted in bad faith in exercising its delegated power of eminent domain against a government-owned property and in misleading the court by not divulging the actual area of the property needed for its substation project.

The ERC said it took note of the opposition submitted by SSS and Transco. However, the subject expropriation proceeding of NGCP against SSS is beyond the jurisdiction of the commission.

“The application only covers the approval of the Pasay 230-kV substation project of NGCP. Nevertheless, it bears stressing that in this application, NGCP only included the acquisition of a 2,000-square-meter lot for the Pasay 230-kV substation project. Hence, the commission approved the acquisition of the 2,000-square-meter lot as proposed,” said ERC in its 40-page decision.

AboitizPower gets go-signal on P12-billion fixed rate bonds

Danessa Rivera (The Philippine Star) - October 1, 2019 - 12:00am

https://www.philstar.com/business/2019/10/01/1956257/aboitizpower-gets-go-signal-p12-billion-fixed-rate-bonds

MANILA, Philippines — Aboitiz Power Corp. is issuing up to P12 billion in fixed rate bonds in the middle of October.

In a disclosure to the Philippine Stock Exchange yesterday, AboitizPower said it received the Securities and Exchange Commission’s go signal to issue the third tranche of its P30-billion debt securities program.

The third tranche will consist of the primary offer of up to P7 billion with an oversubscription option of up to P5 billion.  The offer commenced yesterday and will run until Oct. 4.

AboitizPower intends to list the bonds with the Philippine Dealing & Exchange Corp. (PDEx).

Proceeds will be used to repay the company’s short-term loan obligations and for general corporate purposes.

AboitizPower engaged BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers.

BDO Capital, First Metro, China Bank Capital Corp., SB Capital Investment Corp., and PNB Capital & Investment Corp. serve as joint lead underwriters.

AboitizPower obtained the highest credit rating of PRS Aaa for its planned P12-billion fixed-rate bond offering  from local credit watcher Philippine Rating Services Corp. (PhilRatings). It was also assigned a stable outlook.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk, which means the issuer’s capacity to meet its financial commitment on the obligation is extremely strong.

An outlook, on the other hand, is an indication of the possible direction of any rating change within a one-year period and serves as a further refinement to the assigned credit rating for the guidance of investors, regulators, and the general public.

The bonds, which will have a tenor of seven years, form part of AboitizPower’s  three-year shelf registration of up to P30 billion. 

The company issued the first tranche on July 3, 2017 in the amount of P3 billion, and the second tranche amounting to P10.2 billion on Oct. 25, 2018.

AboitizPower is targeting 4,000 megawatts (MW) of installed capacity by 2020. So far, it currently has a beneficial capacity of around 3,200 MW.

It has investments in various thermal and renewable power generating facilities with a total net sellable capacity of 3,350 MW with its partners.

Its Cleanergy brand amounts to 1,272 MW, 39 percent of its total net sellable capacity.

The company is pushing for a balanced mix strategy—maximizing Cleanergy, while taking advantage of the reliability and cost-efficiency of thermal power plants. 

AboitizPower also owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the second and third largest private utilities in the country.

AC Energy, UPC form renewable energy venture

October 1, 2019 | 12:04 am

https://www.bworldonline.com/ac-energy-upc-form-renewable-energy-venture/

AYALA-LED AC Energy, Inc. said on Monday that it had formed a joint venture company with UPC Renewables to build more than 1 gigawatt (GW) of capacity from renewable energy sources.

“AC Energy is investing $20 million via a development loan to finance the development of this pipeline and expects to provide all the construction equity required for these projects,” the company said in a statement.

It identified the joint venture partner as UPC Solar Asia Pacific, with which it had created UPC-AC Energy Solar. The company was described as UPC Renewables’ solar energy platform for the development, construction and operations of solar projects in the Asia-Pacific region.

AC Energy said the partners’ “initial focus” is on projects in India, South Korea and Taiwan.

“As partnerships and growth opportunities arise, we are always looking at ways to significantly scale up our renewable energy portfolio. AC Energy has always been focused on large-scale projects and is managed by a high-quality management team. We are grateful for their continuous support to the UPC group,” Brian Caffyn, chairman of UPC Renewables, was quoted as saying.

Patrice Clausse, chief operating advisor of AC Energy and director of AC Renewables International, said he believes the company is on its way to achieve a balanced energy mix.

“AC Energy is very excited to invest in another partnership with UPC Renewables. Our move to enter into a large and bankable solar market like India is consistent with AC Energy’s goal to exceed 5,000 MW (megawatts) by 2025, with at least 50% to be sourced from renewables,” he said.

Pranab Kumar Sarmah, chief executive officer of UPC-AC Energy Solar and co-founder of UPC Solar Asia Pacific, was quoted as saying: “We are pleased to have AC Energy as our joint venture partner at a crucial point when UPC Solar is ready to accelerate construction activities of its pipelines and continue its humble journey to reduce carbon footprint. We aim to make this partnership a competitive regional solar project development and asset management platform.” — Victor V. Saulon