AC Energy invests in Southeast Asia wind power developer

MANILA, Philippines — AC Energy Inc., the power unit of Ayala Corp., has acquired a 25 percent stake in a Singapore-based wind developer.

The acquisition of Blue Circle Pte. Ltd. will be done through subsidiary AC Energy International Holdings Pte. Ltd.

Under the deal, AC Energy and TBC will jointly develop, construct, own and operate the latter’s pipeline of around 1,500 MW of wind projects across Southeast Asia, primarily Vietnam, Thailand, Indonesia and Cambodia.

“What we like about this platform and partnership is they have capabilities and track record for wind developments and a good pipeline in the region,” AC Energy president and chief executive officer Eric Francia said in an interview yesterday.

The partners will initially start with 100 MW to 200 MW of wind projects in Vietnam where TBC has 700 MW of wind power projects in Vietnam.

“We’re going to begin this relationship by focusing on Vietnam,” Francia said, noting the government has a feed-in-tariff (FIT) deadline for wind.

For the initial wind project, AC Energy has earmarked $100 million, a portion of which will come from the proceeds from the sale of its thermal assets, Francia said.

Investment in TBC is also a stepping stone for AC Energy to enter other Southeast Asian markets for its regional expansion.

So far, AC Energy has renewable energy investments in Indonesia, Vietnam and Australia.

In Indonesia, its projects include the 75-MW wind farm project in South Sulawesi in partnership with UPC Renewables Indonesia Ltd. and the 637-MW steam and power plant from the Darajat and Salak geothermal fields in West Java through its 20 percent stake in Star Energy (Salak-Darajat) BV.

AC Energy has also partnered with AMI Renewables Energy Joint Stock Co. to build solar farms totaling 80 MW in the provinces of Khanh Hoa and Dak Lak, and with the BIM Group of Vietnam to jointly develop over 300 MW of solar power projects in Ninh Thuan province.

The company has also acquired a 50 percent stake in UPC Renewables Australia, which is developing the 1,000-MW Robbins Island and Jims Plain wind projects in North West Tasmania and the 600-MW New England Solar Farm located near Uralla in New South Wales.

The Australian firm also has a pipeline of 3,000 MW renewable energy project developments located in New South Wales, Tasmania and Victoria.

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

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.