MANILA, Philippines – Ayala-owned AC Energy Holdings Inc. is setting aside plans to develop hydropower projects to focus on other renewable energy (RE) developments in more advanced stages after it sold all its interests in three hydropower companies.
AC Energy signed definitive documents to sell its controlling stake in three hydro companies to Sta. Clara Group Inc., its parent firm Ayala Corp. disclosed to the Philippine Stock Exchange yesterday.
It divested its majority interests in QuadRiver Energy Corp., Philnew Hydro Power Corp. and PhilnewRiver Corp., which are grantees of several hydropower service contracts from the Department of Energy.
Prior to the sale, AC Energy held 70 percent of the outstanding capital stock of each of the hydro companies while the remaining 30 percent were owned by Sta. Clara Power Corp.
The divestment will allow AC Energy to focus on other renewable energy developments such as solar and wind, the company said.
“AC Energy will first focus on solar and wind development, and could potentially revisit hydro in the future,” AC Energy president and CEO John Eric Francia said in a text message.
Currently, the company has three RE projects: the 52-megawatt (MW) Northwind Power Development Corp. in Bangui, Ilocos Norte; the 81-MW wind farm in Pagudpud, Ilocos Norte through its affiliate North Luzon Renewable Energy Corp. (NLREC) and the 18-MW solar plant in Negros Oriental, a joint undertaking with Bronzeoak Clean Energy Inc.
In October last year, Francia bared the company’s first venture in Indonesia – a wind project with less than 100 MW in capacity to break ground in “the next few months.”
In April 2011, AC Energy – then Michigan Power Inc. – forged a joint venture with Sta. Clara Power to co-develop hydroelectric power projects across the country. Both formed development companies Quad- River, Philnew Hydro Power Corp., Philnew River Hydro Corp. and Matic Hydro Corp.
Sta. Clara Power is majority owned by Sta. Clara International, a leading engineering and main contracting groups with local and overseas projects.
Initially, the Ayala Group shelled out P600 million to develop run-of-river hydroelectric power projects.
In February 2012, QuadRiver broke ground for the 5.2-MW mini-hydro project along the Cantakoy River at Brgy. Cabatuan in Danao, Bohol.