MANILA, Philippines - The energy arm of conglomerate Ayala Corp. is investing in a solar power plant with up to 40 megawatts in capacity in Negros Oriental, marking its entry into solar development.
The conglomerate disclosed yesterday its wholly-owned unit AC Energy Holdings Inc. signed Tuesday a subscription and shareholders’ agreement with Bronzeoak Clean Energy Inc. to develop, construct and operate a solar power farm in Bais City, Negros Oriental.
A special purpose vehicle Monte Solar Energy Inc. has been formed to undertake the project.
The first phase of the project will have a capacity of 18 MW with a total project cost of P1.3 billion. It is targeted for completion by March 2016.
The second phase, on the other hand, involves the expansion of the initial 18 MW solar power plant to up to 40 MW.
AC Energy president and CEO John Eric Francia said this investment would expand the power firm’s renewable energy (RE) assets.
“This project serves as a good entry platform for our investment in solar power, particularly as technology costs have dramatically improved over the past few years,” he said.
For his part, Bronzeoak president Jose Maria Zabaleta said the new solar project puts the company on track to develop 202 MW of solar capacity.
Meanwhile, MonteSol president Xavier P. Zabaleta said “the investment of AC Energy would only accelerate the ongoing rapid development of Negros.”
“Investments like these have been made possible by the strong leadership and project support of the provincial governors of Negros and the local governments of Bais, San Carlos, La Carlota and Manapla,” he added.
Bronzeoak Clean Energy is the investment arm of Bronzeoak Philippines Inc., the developer and managing shareholder of the 45 MW San Carlos Solar Energy project.
San Carlos is the country’s first and largest solar farm, inaugurated by Pres. Aquino III in May 2014. It was the first ever renewable energy project that received incentives under the Feed-in-tariff (FIT) System.
AC Energy aims to build 1,000 MW of power by 2016. As of July, the Ayala power unit had about 700 MW in its energy portfolio.