AC Energy to pursue development of Vietnam solar plant

MANILA, Philippines — The power unit of Ayala Corp. is pursuing the development of 80 megawatts (MW) of solar power plants in Vietnam, its second renewable energy platform in that country.

AC Energy Inc. said it has partnered with AMI Renewables Energy Joint Stock Co. to build solar farms in the provinces of Khanh Hoa and Dak Lak.

“We are excited to expand our development initiatives in Vietnam and work with our local partner AMI Renewables,” AC Energy president and CEO Eric Francia said.

The solar farms are targeted for commissioning in time for the June 2019 solar feed in tariff deadline.

The partners have signed an engineering, procurement and construction (EPC) and financing documents for the development of solar plants.

Indovina Bank of Vietnam and RCBC of the Philippines will provide non-recourse financing for the Dak Lak and Khanh Hoa projects, respectively.

“We appreciate the strong commitment of the Vietnam government to promote renewables, and the strong support from our banking partners that are providing project finance,” Francia said.

The projects are estimated to cost $83 million, financed with debt and equity.

Under the partnership, AC Energy will participate with at least 50 percent economic share.

AC Energy formed a platform company with AMI Renewables last year to build renewable energy plants in Vietnam, including the 352-MW Quang Binh wind project.

The wind farm is estimated to have a total investment of $493 million. Initially, a capacity of 252 MW will be built costing $353 million.

AC Energy has set a 5,000-MW target, a ramp up from the previous target of 2,000 MW by 2020, which would be achieved through investments in more thermal and renewable projects here and abroad.

It sold part of its stake in its thermal platform to Aboitiz Power Corp. for $579.2 million (roughly P31 billion) to pursue its expansion of renewable energy projects.