AC Energy on track to surpass renewable target

MANILA, Philippines — Ayala-led AC Energy Philippines Inc. may exceed its 2025 target of achieving 5,000 megawatts (MW) capacity with more projects expected to come online next year.

In a virtual briefing, ACEN president and chief executive officer Eric Francia said the company, is constructing projects in the Philippines, Australia, India and Vietnam which will have the capacity to generate 1,500 MW of electricity next year.

“In those four markets,  we expect to build 1,500 MW of which  we will own approximately 1,200 MW,”Francia said.

At present, ACEN has around 1,000 MW of capacity in the Philippines, of which 550 MW are renewables.

Francia said by next year, ACEN’s renewable portfolio would reach around 1,350 MW with the infusion of AC Energy International into ACEN, which will add around 900 MW of renewable capacity.

With these new projects ACEN’s renewable capacity  will increase to 2,500 MW by the end of 2021.

“That’s why I said I’m quite confident that we will exceed the 5,000-MW goal in 2025,” Francia said.

He said the 1,500 MW worth of projects would require a capital of over $700 million.

Francia said the company would need around $1.8 billion to $2.billion to fund its projects.

ACEN has lined up several fund raising activities next year, which can generate around $500 million to $600 million. These include a stock rights offering in the first quarter of 2021 as well as the private placement deal for the subscription of four billion shares by a unit of Singapore state fund GIC Private Ltd.

Francia said the company is also targeting a follow-on offering next year.