UPC-AC Energy Solar, the joint venture between AC Energy and Infrastructure Corp. (AC Energy) and UPC Solar Asia Pacific Ltd., have finalized funding for its 100megawatt (MW) solar farm in India.
This means that they reached financial close for the $67-million solar power project, which is expected to generate power within the first half of the year. Construction started last year.
“Sitara solar secured a 20-year loan from the US International Development Finance Corp. (DFC), to be funded through a 75:25 debt-to-equity financing scheme,” Ayala Corp. said Monday. AC Energy is a wholly-owned subsidiary of the conglomerate.
This is the latest in AC Energy’s string of initiatives to sustain its growth momentum and expand its renewables capacity in the Asia Pacific region.
“We are well-positioned to establish a meaningful presence in India and contribute to the country’s renewable energy goals, bringing a total of 450 MW of solar projects under construction and in the pipeline with our partner, UPC Renewables,” said Patrice Clausse, Chief Operating Officer of AC Energy International.
UPC-AC Energy Solar targets to achieve more than one gigawatt (GW) of solar energy portfolio across Asia.
In March 2019, UPC-AC Energy Solar won the power supply agreement for the 100 MW solar project via a competitive bid at INR 2.48 per kWh, fixed over a 25-year period.
“We are very thrilled with this financial close during the current challenging environment, where we were able to meet DFC’s high standards for environmental and social compliances.
This project is poised to enhance renewable power supply in India. We had faced many unexpected headwinds due to Covid-19 pandemic. Thanks to the immense hardwork of the highly motivated and capable teams from all parties involved, who worked shoulder-to-shoulder to make this transaction happen,” said Pranab Kumar Sarmah, CEO of UPC-AC Energy Solar and co-founder of UPC Solar Asia Pacific.
The partnership would help AC Energy achieve its goal to source over 60 percent of energy capacity from renewable sources in 10 years.
“We aim to contribute a significant portion of AC Energy’s 2025 renewable energy capacity targets from our projects under development and construction in this region,” said UPC Renewables Chairman Brian Caffyn.
As one of the fastest-growing economies in the world, India ranks third globally in terms of its 2020 renewable energy investments and plans, and foresees its electricity consumption jumping to 15,280terrawat hours (TWH) in 2040. As of November 2020, India’s installed renewables capacity stands at 90.39 GW, with 36.91 GW coming from solar. Sitara Solar will supply energy to the government-owned Solar Energy Corporation of India (SECI), which facilitates the purchase and resale of electricity of solar projects to the benefit of the distribution companies across various states.
Meanwhile, AC Energy Corp. (ACEN) is investing P350 million in its subsidiary.
ACEN signed a subscription agreement with ACE Endevor Inc. involving 3.5 million Redeemable Preferred Shares at P100 apiece, to be issued out of the increase in authorized capital stock of Endevor.
The subscription agreement was signed last March 12. Endevor will use the proceeds to fund its projects’ pre-development and equity funding requirements.
The transaction is still subject to the approval of the Securities and Exchange Commission.
Endevor is intended to be ACEN’s project development, management, and operations platform.
