PCC OKs AC Energy’s power plant in Rizal

MANILA, Philippines — AC Energy Philippines Inc. (ACE PH) and its partner have secured regulatory approval to pursue the joint development of a planned 150-megawatt (MW) diesel modular generator set power plant in Pililia, Rizal.

In a disclosure to the Philippine Stock Exchange yesterday, ACE PH said the Philippine Competition Commission (PCC) has cleared the shareholders agreement between parent AC Energy Inc. and subsidiary ACE Endevor Inc. with Axia Power Holdings Philippines Corp., a subsidiary of Marubeni Corp. of Japan.

The agreement covers the development, construction and operation of the 150-MW Ingrid diesel power plant project in Rizal, which is expected to be operational in the first quarter of 2021.

In its decision, the PCC said the transaction would “not likely result in substantial lessening of competition.”

With the PCC approval, the parties can proceed with the completion of the transaction while Ingrid Power Holdings Inc., the special purpose vehicle of the diesel plant, can issue new shares to raise its authorized capital stock and create new shares.

Under the deal, ACE PH will have 50 percent voting rights and 45 percent of the economic rights in Ingrid, with Endevor having a five percent share of the economic rights.

On the other hand, Axia will acquire 50 percent of the voting shares and 50 percent of the economic rights in Ingrid.

“The company will have the opportunity to earn stable dividend income from the operations of the Ingrid Project,” ACE PH said.

The development and construction costs shall be shared equally by both ACE PH and Axia.

Ingrid will have a total subscribed capital of P1.97 billion. As of January this year, ACE PH had already infused P570 million into Ingrid to fund the project.

Once completed, the Ingrid project would provide ancillary services to the National Grid Corp. of the Philippines (NGCP) and supply peaking and reserve power to the Luzon grid.

ACE PH said the joint venture with Axia supports its strategic objective to be the growth platform of Ayala Corp.’s power business in the country.

“The company will have the opportunity to develop a greenfield project which will provide peaking and reserve power in partnership with Axia, which has extensive experience in the local and international power sector,” it said.

AC Energy, the energy platform of Ayala Corp., 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 aims to exceed five gigawatts of attributable capacity and generate at least 50 percent of energy from renewables by 2025.