AC Energy, Vietnam firm partner for biggest solar farm in SE Asia

MANILA, Philippines — The power unit of Ayala Corp. has signed engineering, procurement and construction (EPC) contracts and financing documents with the BIM Group of Vietnam for a solar power plant project in Vietnam.

In a statement, AC Energy said the partnership with the Vietnamese company will involve the development of the BIM Solar Power plants in Ninh Thuan province.

The initial 30 megawatt peak (MWp) project broke ground earlier this year.

“These contracts increase the solar farm size from 30 MWp to 280 MWp. The joint venture plans to further expand the capacity to well over 300 MWp,” AC Energy said.

Once completed, the solar farm will be the largest in Southeast Asia. The project is expected to commence operations in time for the June 2019 solar feed in tariff deadline.

“We are excited to scale up our development initiatives in Vietnam. We expect to build on this momentum and add more projects in the future” said Eric Francia, AC Energy president and CEO.

Project cost is estimated at around $237 million, which will be financed by debt and equity.

“AC Energy will participate with a 30 percent voting stake and approximately 50 percent economic share,” the company said.

BIM Group is a diversified corporation in Vietnam engaged in a number of industries such as tourism development and real estate investment, agriculture, food, commercial services and renewable energy.

The company has significant experience in business development in Ninh Thuan, the host province for the solar project.

Apart from the solar project, AC Energy earlier said it is eyeing to participate in the development a wind farm in Quang Binh province

Parent firm Ayala Corp. earlier signed a memorandum of understanding with Quang Binh province to develop the 325-megawatt (MW) B & T wind farm with a total investment of $493 million.

AC Energy has also entered the Indonesia market as part of its overseas expansion.

The company is developing the 75-MW Sidrap wind farm in Indonesia, 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 B.V. with Star Energy Group Holdings Pte. Ltd., Star Energy Geothermal Pte. Ltd. and Electricity Generating Public Co. Ltd.

AC Energy is one of the fastest growing energy companies with over $1 billion of invested and committed equity in renewable and thermal energy in the Philippines and around the region.

The company aspires to exceed five gigawatts of attributable capacity and generate at least 50 percent of energy from renewables by 2025.