AC Energy seeks investors for $2-B thermal platform

MANILA, Philippines — AC Energy Inc., the power business of Ayala Corp., is seeking investors for its $2-billion thermal platform as the company gears up for local and regional expansion.

The company plans to sell as much as half of its thermal energy platform to balance its renewable and thermal portfolios and raise capital to support growth as the company expands in the region.

“While we will grow our renewables exponentially, we shall continue to grow our thermal platform in the Philippines and around the region,” AC Energy president and CEO Eric Francia said.

“AC Energy is currently in discussions with potential investors/partners for our thermal platform,” he said.

According to brokerage firm CLSA, AC Energy’s entire platform is valued at $2.6 billion or roughly P135 billion.

Of the total, thermal projects account for about 80 percent or more than $2 billion, while renewables account for the remaining 20 percent valued at more than $5 billion.

AC Energy has a total attributable capacity of around 1,600 megawatts (MW) across its thermal and renewables platforms.

Its thermal business consists of investments in a 2x122-MW coal-fired power plant under South Luzon Thermal Corp., a 2x316-MW coal fired-power plant under GNPower Mariveles, a 2x668-MW supercritical coal-fired power plant under GNPower Dinginin, and a 4x138-MW coal-fired power plant under GNPower Kauswagan.

It also has thermal expansion projects in the Philippines and an emerging pipeline of thermal projects in Southeast Asia.

AC Energy, together with its partners Aboitiz Power and Power Partners, started the construction of the second unit of the 2x668 MW GNPower Dinginin supercritical coal power plant.

By 2025, the Ayala power business has set a 5,000-MW target, a ramp up from the previous target of 2,000 MW by 2020.

The 5,000-MW goal would require over $2 billion in equity, Francia said earlier. Francia also said the company is eyeing more thermal and renewable projects here and abroad to meet its target.

AC Energy is present in Indonesia with its 75-MW Sidrap wind farm in partnership with UPC Renewables Indonesia Ltd. It also operates 637 MW of steam and power from the Darajat and Salak geothermal fields in West Java, through joint venture firm Star Energy Geothermal (Salak-Darajat) B.V. with Star Energy Group Holdings Pte. Ltd., Star Energy Geothermal Pte. Ltd. and Electricity Generating Public Co. Ltd.

In Vietnam, it has partnered with BIM Group of Vietnam to jointly develop over 300 MW of solar power projects in Ninh Thuan province.

As of the first quarter, AC Energy nearly doubled its net profits to P593 million.