AC Energy, Ingrid Power ink share subscription deal
By Lenie Lectura -December 20, 2019
from Business Mirror
AC Energy Philippines Inc. (ACEPH) signed a deal with Ingrid Power Holdings Inc., formerly AC Energy DevCo. Inc., for the subscription of common and preferred shares valued at P570 million.
“ACEPH signed today a subscription agreement with Ingrid for the subscription of 50,000 common shares and 5,651,000 redeemable preferred shares RPS in Ingrid at the subscription price of P4,900,000.00 for the common shares and P565,100,000 for the RPS,” ACEPH, formerly Phinma Energy Corp., said Thursday.
ACEPH has fully paid-in the common shares and paid 25 percent of the subscription of the RPS.
“Issuance of the shares is subject to the necessary regulatory approvals for increase of Ingrid’s authorized capital stock and creation of new shares,” added ACEPH.
Ingrid is developing a 300-megawatt diesel power plant in Pililla, Rizal. Construction of the first 150 MW will commence in the first quarter of 2020.
The project is aimed at addressing the peaking and reserve requirement of the Luzon grid.
The company secured an approval to conduct a grid impact study for the project. A clearance for the conduct of a grid impact study is necessary before a power firm can proceed with the construction of its power project.
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 explained that diesel-run power plants are used to provide ancillary services, such as backup power, load following, system frequency and voltage regulation. They are like 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 of thinking if RPS (Renewable Portfolio Standards) succeeds then you need ancillary for that,” Francia said.
