ACEN makes headway in Luzon solar projects

MANILA, Philippines — AC Energy Corp. (ACEN) is making headway in its solar projects in Luzon as it completed the first of its five solar farms in the pipeline.

In a disclosure to the Philippine Stock Exchange yesterday, ACEN said it started operating its 63-megawatt (MW) GigaSol Palauig solar farm in Zambales, generating power for supply to the Luzon grid.

The P2.39-billion facility, which faced challenges in construction amid the pandemic, will generate over 90 million KWh of clean power to support the country’s demand.

“The Palauig solar farm is the first of AC Energy’s five new plants to begin operating in 2021, making it quite an exciting year for the company’s Philippine operations,” ACEN chief development officer Jose Maria Zabaleta said.

“This is all the more important as these new plants can help offset some supply shortfalls in recent months, and help to reduce the elevated prices seen in the market caused by these shortages,” he said.

ACEN has also started the construction of its next solar farm, which is a 72-MW solar project in Arayat-Mexico, Pampanga. The project is a 50-50 joint venture with Citicore Solar Energy Corp. (CREC).

The project is estimated to cost P2.75 billion and will be ready to begin its operations and supply power to the grid by the summer of 2022.

“We are also very excited about the Arayat-Mexico project, which is our first venture with CREC. Our collaboration over the past 18 months has been very successful, and we look forward to growing that in the years to come,” Zabaleta said.

These solar developments in Central Luzon are the latest in AC Energy’s renewables growth strategy as the company continues to embark on a transformation journey.

ACEN now has over 1,000 MW of attributable capacity in the Philippines, with almost half coming from renewable sources. The company’s strong balance sheet, complemented by a robust pipeline of renewable energy projects will significantly grow its renewables share over time.

In a separate disclosure, ACEN said it signed a deed of assignment with parent firm AC Energy and Infrastructure Corp. (ACEIC).

Under the deed of assignment, ACEIC will subscribe to around 16.69 billion shares at P5.15 per share or P85.93 billion in exchange for ACEIC’s 1.7 billion common shares and 15.03 billion redeemable preferred shares in AC Energy International Inc. (formerly Presage Corp.). The shares will be issued out of its increase in authorized capital stock to P48.4 billion.

ACEN said the increase in its capital stock, as well as the valuation of the property assigned by ACEIC to the ACEN, are subject to the review and approval of the Securities and Exchange Commission.

The infusion of the Ayala Group’s international power assets in Vietnam, Indonesia, Australia, India and Myanmar will add 1,400 MW in capacity to ACEN, increasing its attributable capacity to 2,400 MW once completed.

Of the total attributable capacity, over 1,800 MW or 77 percent will come from renewable sources, putting the firm in an excellent position to attain its vision of reaching five gigawatts of renewables by 2025, and realize its aspiration of becoming the largest listed renewables platform in Southeast Asia.

These developments put the company in an excellent position to play a meaningful role in the green-led recovery as it move towards its aspiration of becoming the largest listed renewables platform in Southeast Asia.