AC Energy, Axia Power ink deal for Rizal plant
By Lenie Lectura – July 24, 2020
from Business Mirror
AC Energy Philippines Inc. (ACEPH) signed a shareholders’ deal that paves the way for the development of a 150-megawatt (MW) diesel power plant in Pililla, Rizal.
ACEPH and its wholly-owned subsidiary, ACE Endevor Inc. (Endevor), signed a shareholders’ agreement with Axia Power Holdings Philippines Corp. (Axia), a subsidiary of Marubeni Corporation, for the development, construction and operation of a diesel power plant, otherwise known as the Ingrid Project.
Under the agreement, Axia will acquire 50 percent of the shares and 50 percent of the economic rights in ACEPH subsidiary Ingrid Power Holdings Inc. (Ingrid), the special purpose vehicle of the Ingrid Project.
ACEPH will hold 50 percent of shares and 45 percent of the economic rights, with Endevor having a 5-percent share of the economic rights in the Ingrid Project.
The plant, which will supply peaking and reserve power to the Luzon grid, is expected to be operational in the first quarter of 2021.
Ingrid and Endevor were acquired by ACEPH in exchange for ACEPH shares. As of January this year, ACEPH has infused P570 million into Ingrid to fund the project. The joint venture is subject to the approval of the Philippine Competition Commission.
AC Energy president Eric Francia had said it “makes sense” to put up a diesel plant to cater to ancillary services to augment renewable energy (RE) technologies.
He said diesel-run power plants are used to provide ancillary services, such as backup power, load following, system frequency, and voltage regulation. These are akin to standby power plants if say, a wind power facility does not provide too much wind or if it rains in an area where a solar power farm is located.
“We believe the country will need more peaking and reserve ancillary capacity especially in world where you need RE. This is in line with thinking if RPS [Renewable Portfolio Standards] succeeds then you will need ancillary for that,” Francia said.
AC Energy has committed to scale up its RE expansion and has identified the Philippines, Indonesia, Vietnam, Australia, India and Myanmar as key target markets.
It aspires to exceed five gigawatts (GW) of renewables capacity and generate at least 50 percent of total energy output from renewables by 2025.
In 2019, AC Energy’s power portfolio registered an attributable capacity of over 1.8 GW in operation and under construction, spanning projects in the Philippines, Indonesia and Vietnam.
