AC Energy puts in P1.8 billion into new unit

MANILA, Philippines — AC Energy Corp. (ACEN) is investing nearly P1.8 billion in its subsidiary which partly owns a new wind farm in Ilocos Norte.

In a disclosure to the Philippine Stock Exchange yesterday, ACEN said it signed a subscription agreement with subsidiary Pagudpud Wind Power Corp. (PWPC), wherein it will subscribe to a total of 30.33 million shares, comprising of 3.03 million common shares and 27.3 million Class A redeemable preferred shares, in the unit.

ACEN will be putting in a total of P1.78 billion as additional investment in the subsidiary, which shall be paid until the first quarter of 2022.

“The subscription will be used by the issuer to subscribe to shares in Bayog Wind Power Corp. (BWPC), which will be used by BWPC to fund initial works to start the construction of the Balaoi and Caunayan wind power project in Barangays Balaoi and Caunayan, Pagudpud, Ilocos Norte,” the company said.

PWPC owns 60 percent of BWPC, which is developing the 160-megawatt (MW) Balaoi and Caunayan wind power project, the country’s largest wind farm to date.

ACEN said it has started construction for the Balaoi and Caunayan wind project.

The wind farm, with a project cost of P11.4 billion, is ACEN’s latest project with long-time partner, UPC Renewables.

The Balaoi and Caunayan wind project has 32 of the latest wind turbines from leading supplier Siemens Gamesa, each capable of producing five MW.

The project’s target completion is slated in the fourth quarter 2022, in time for full year operations in 2023, when supply in the Luzon energy market is expected to be tight.

It will be the third wind development of AC Energy in Ilocos Norte, along with the 52-MW NorthWind wind farm in Bangui and the 81-MW North Luzon Renewables wind farm in Pagudpud.

Once completed, the Balaoi and Caunayan wind project will double ACEN’s wind energy capacity in the country.