AC Energy increases capacity to 1,600 MW after Dinginin deal

MANILA, Philippines — Ayala-owned AC Energy Holdings Inc. has raised its attributable capacity to 1,600 megawatts (MW) after securing project financing for its Dinginin coal-fired power project.

AC Energy said GNPower Dinginin Ltd. Co. (GNPD) has achieved financial close for the project financing of the second unit of its 2x668-MW super-critical coal fired power plant in Dinginin, Bataan.

The estimated project cost of the GNPD project is $1.7 billion, with the debt component to be provided by Philippine banks.

The company, however, did not disclose the amount of the funding and the identity of the local banks GNDP forged a deal with. Officials were not immediately available for comment.

In September 2016, GNPD has made the first drawdown of nearly P5 billion from its credit line to finance the construction of the first unit of its 2x668-MW power plant.

The initial drawdown amounted to P4.93 billion, or P4 billion and $2 million from its peso-denominated and dollar-denominated credit facility, AC Energy said. In total, the credit line amounts to P7 billion and $670 million.

It was announced in 2015 that GNPD will be borrowing as much as $1 billion for the construction of the first 668-MW unit of its supercritical power plant, which is an expansion of the existing 600-MW coal-fired power plant in Mariveles.

AC Energy said the GNPD project will support the increasing electricity demand of Luzon and Visayas. 

Construction of the first unit is well underway, and is target for commercial operations by 2019, while the second unit is scheduled for completion in 2020.

The Ayala firm said the secured financing for the GNPD Unit 2 brings AC Energy’s attributable capacity to over 1,600 MW, moving closer to attain its 2020 goal of reaching 2,000 MW attributable capacity of power plants that are operational or under construction.

“GNPD’s contribution not only brings us closer to our 2020 target capacity but also addresses supply requirements in the 2020s, amid medium term supply uncertainties in the power sector,” AC Energy president and CEO John Eric Francia said.

These uncertainties include the delays faced by other major power plants as well as the future of Malampaya and liquefied natural gas (LNG) supply.

Started in 2011, AC Energy is now one of the fastest growing energy companies in the Philippines.

Last year, It began to expand regionally with its first two investments in Indonesia - Sidrap Wind and Salak-Darajat Geothermal plants. The company expects to make investments in Vietnam in 2018 to further expand its geographic footprint in Southeast Asia.