ACEN infusing additional P271 million for Cagayan solar project

MANILA, Philippines — ACEN Corp. is infusing an additional P271.48 million in a special purpose vehicle that will develop a solar farm project in Cagayan through subscription of more shares.

ACEN said it signed a subscription agreement with Natures Renewable Energy Devt. Corp. (NAREDCO) for the subscription of 99,750 redeemable preferred shares (RPS).

The shares are composed of 57,750 RPS A with a par value of P2,820.51 per share and 42,000 RPS C at P2,585.55 apiece.

ACEN said the investment would be used by NAREDCO to fund the development of the first phase of the Cagayan North Solar Power Plant Project in Lal-lo, Cagayan with a capacity of 133-megawatt direct current (MWdc).

NAREDCO is a special purpose vehicle for the development of the Cagayan North Solar Power Project, ACEN’s joint venture project with Cleantech Renewable Energy 4 Co.

ACEN said full payment of the subscription price is subject to the necessary regulatory approval by the Securities and Exchange Commission on the increase in authorized capital stock of NAREDCO.

Last August, ACEN subscribed to a total of 475,000 RPS A and RPS C of NAREDCO for a P1.29 billion, proceeds of which will be also used for the solar power project.

Commercial operations of the project, which will be developed in two phases, is expected to commence in 2024.

ACEN’s board in September approved the revised funding of the Cagayan North Solar Power Project to include additional investment in Phase 1 and the 100-MWdc expansion.

ACEN, ACE Endevor, CREC4 and NAREDCO have signed last March a shareholders’ agreement to cover the ownership and management of NAREDCO, as well as the development and operation of the 200-MWdc Lal-lo solar power project.

ACEN, the listed energy platform of the Ayala Group, is committed to 100 percent renewables generation by 2025, as well as reaching its ambitious goal of reaching 20 gigawatts of renewables capacity by 2030.

The company has about 4,000 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India, and Australia, with a renewable share of 87 percent.