AC Energy acquires 50% of Pampanga solar farm

MANILA, Philippines — The AC Energy group has acquired a 50 percent stake in a 50-megawatt (MW) solar farm in Pampanga being developed by Citicore Solar Energy Corp. (CSEC)

In a disclosure to the Philippine Stock Exchange yesterday, AC Energy Corp. (ACEN) said the company and its subsidiary ACE Endevor Inc. signed a shareholders’ agreement with CSEC and Greencore Power Solutions 3 Inc. to develop, construct and operate a photovoltaic (PV) solar power plant in Arayat and Mexico, Pampanga.

The solar plant will have an installed nominal capacity of 50-megawatt AC power (MWac), which is scheduled to start operations in November 2021.

“The company will have the opportunity to earn stable dividend income from the operations of the project,” ACEN said.

Under the deal, CSEC will have 50 percent of the shares in Greencore, the special purpose vehicle of the solar project, while ACEN and Endevor will hold 45 percent and five percent, respectively.

Greencore’s board shall consist of five members consisting from two representatives each from  ACEN and CSEC. The fifth director will be nominated jointly by ACEN and CSEC.

CSEC will undertake the provision of engineering, procurement and construction (EPC) services through its affiliated entities, including but not limited to, Megawide Construction Corp. or any of Megawide’s designated subsidiaries or affiliates for the project.

“This joint venture supports the company’s strategic objective to be the growth platform of the AC Energy Group in the country. The company will have the opportunity to develop a greenfield stand-alone solar farm, which will provide daytime power to the Luzon grid, in partnership with CSEC,” ACEN said.

Meanwhile, ACEN has agreed to provide a term loan facility of up to P2.765 billion to Greencore to finance the construction of the solar farm.

The loan will finance the design, engineering, financing, construction, procurement and supply, manufacturing, commissioning, start-up, testing, delivery, ownership, operation and maintenance of the said plant.

“The loan will be secured by a real estate mortgage over the borrower’s real assets in favor of the company,  a mortgage and pledge over the shareholding of the shareholders of the borrower, and the cashflows of the project,” ACEN said.

ACEN also signed an agreement with Greencore to subscribe to 2.25 million common shares with a par value of P1 per share, or P2.25 million, to be issued out of the unissued authorized capital stock of Greencore.

The said amount will be used by Greencore to partially fund the development and construction of the solar project.

Citicore earlier said the solar farm had a project cost of P3.3 billion.

The project will bring Citicore’s total capacity to 238 MW with a total of eight operating solar plants located in various provinces in the Philippines.

Last month, ACEN took over Solar Philippines Central Luzon Corp. (SPCLC) by acquiring a 97.6 percent interest from Solar Philippines Power Project Holdings Inc.

ACEN, 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.

This year, it is eyeing to double its Philippine capacity from 450 MW to 1,000 MW.

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