ACEN sells aging diesel power barges

MANILA, Philippines — AC Energy Corp. (ACEN) has decided to let go of its aging diesel-fired power barges, which are targeted to be unloaded in the fourth quarter, amid the company’s plan to reduce its thermal and raise renewable energy capacities.

In a disclosure to the Philippine Stock Exchange yesterday, ACEN said its executive committee approved the sale of power barge assets, as well as the amendment of agreements with the company’s diesel subsidiaries.

ACEN is selling Power Barge 101 to Prime Strategic Holdings Inc., and Power Barges 102 and 103 to SPC Power Corp.

The power barges can also be unloaded to the buyers’ designated affiliates or subsidiaries.

Sought for comment, the ACEN project team said the sale followed the company’s focus on renewables.

The assets were part of the acquistion of Phinma Energy Corp. (PHEN) from the Del Rosario family for P6.3 billion in 2019.

“Assets are aged, these were inherited when we acquired PHEN,” the ACEN project team said in a reply to The STAR.

“But the assets still have flexibility and good value. 101 is operational, providing ancillary reserves, peaking load and/or as a back-up supply,” it said.

Power Barge 101 is an operating power plant, while Power Barges 102 and 103 are non-operating.

“PB102 has been decommissioned since July 2020, whereas PB103 has not commercially operated since 2015,” the firm said.

ACEN said the sale of the power barges is expected to be completed in the fourth quarter, subject to satisfaction of agreed conditions precedent, including obtaining the applicable regulatory approvals.

Meanwhile, ACEN’s executive committee also cleared the amendment of the company’s power administration and management agreements (PAMAs) with its wholly-owned subsidiaries CIP II Power Corp. (CIP II), Bulacan Power Generation Corp. (BPGC), and One Subic Power Generation Corp. (OSPGC).

Under the amendment, all diesel power plant operators should update the fixed capacity fees billable to the company and include a variable capacity fee billable by CIP II and BPGC.

The amendments to the PAMAs are effective July 1.

CIP II and BPGC respectively own and operate a 21-megawatt (MW) diesel plant in Bacnotan, La Union and a 52-MW diesel plant in Norzagaray, Bulacan, while OSPGC leases the 116 MW diesel plant in Subic Bay Freeport.

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.

The company aims to exceed five gigawatts of attributable capacity—with projects here and abroad, to generate at least 50 percent of energy from renewables by 2025, and to become the largest listed renewables platform in Southeast Asia.