AC Energy sees more earnings contribution by 2019
(The Philippine Star) - October 18, 2015 - 10:00am

MANILA, Philippines - The power unit of Ayala Corp. is expected to contribute more earnings to its parent firm by 2019, a ranking company official said.

The country’s oldest conglomerate has just started operating two-thirds of its power portfolio this year, AC Energy Holdings Inc. president and CEO John Eric T. Francia said.

So far, he said AC Energy accounts for less than 10 percent of the earnings of the parent company.

“This year, we expect to be contributing already. I can’t give an indication, but given that a lot of our assets are already operational, obviously that helps,” he said.

Francia also noted it would take a couple of years before the group’s power assets stabilize. “It takes time to get at a steady state,” he said.

Plants that are running include its two wind farms in Ilocos Norte, namely the 19-megawatt (MW) wind farm expansion in Bangui under Northwind Power Development Corp., and its 81-MW wind farm in Caparispisan, Pagudpud under North Luzon Renewables Energy Corp.

The first unit of South Luzon Thermal Energy Corp.’s (SLTEC) 2 X 135-MW Circulating Fluidized Bed (CFB) Power Plant in Calaca, Batangas has also started commercial operations last April.

SLTEC is a joint venture of AC Energy and Trans-Asia Oil and Energy Development Corp.

The second unit is targeted to add another 135 MW in capacity by year-end.

“The second unit of SLTEC is already being commissioned, so any time now we should be in commercial operations,” Francia said.

Other power projects on the table include the 2x600 MW expansion of the 600-MW power plant of GNPower Mariveles Coal Plant Ltd. Co., of which AC Energy owns 17 percent. Its partners in the plant include US-based GN Power, owned by Nauruan-American firm Power Partners Ltd. Co. and Sithe Global Power LLC, a company owned by investors of The BlackStone Group.

It is also working on the phased construction of a 4x135 MW coal-fired power plant in Kauswagan, Lanao del Norte in Mindanao under GNPower Kauswagan.

AC Energy also ventured into solar power developments by partnering with Bronzeoak Clean Energy to develop the Monte Solar Energy Inc. solar power plant with up to 40 MW in capacity in Bais City, Negros Oriental. 

“For the solar, it will be quick. It will be operational by next year,” Francia said.

“And once GNPower Kauswagan stabilizes, call it 2018-2019 or hopefully sooner, given that we hope to start in 2017, then you’ll be able to see stable earnings by 2019,” he said.

 

ACIRC AYALA CORP BAIS CITY BRONZEOAK CLEAN ENERGY CIRCULATING FLUIDIZED BED ENERGY ENERGY AND TRANS-ASIA OIL AND ENERGY DEVELOPMENT CORP ENERGY HOLDINGS INC ILOCOS NORTE KAUSWAGAN POWER
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