Ayala commits to growing RE assets
By Jordeene B. Lagare – April 25, 2020
from The Manila Times
THE Ayala Group, through its power arm AC Energy Philippines Inc. (ACEPH), is helping to usher in a new era of low-carbon electricity by joining other major companies that are investing in nonconventional energy sources.
“We are making a commitment to transition to a lower carbon portfolio by rebalancing our generation portfolio to grow our renewable energy (RE) assets,” ACEPH Chairman Fernando Zobel de Ayala said during the listed firm’s virtual annual stockholders meeting earlier this week.
AC Energy Inc., the parent firm of ACEPH, recently launched its environment and social policy that is anchored on three pillars: excellence in environmental management; commitment to the community; and transitioning to a low-carbon portfolio by 2030.
With the new blueprint in place, ACEPH President and Chief Executive Officer Eric Francia said the company intends to fully divest from coal-fired power plants while bolstering its renewable energy (RE) investments here and abroad.
“We will continue to expand and diversify our generation capacity and will target to exceed 1,500 megawatts (MW) of capacity by 2020 and significantly increase our renewables capacity,” he said.
Francia said the Ayala energy unit is targeting to exceed 1,500 MW of capacity this year from 1,100 MW. This, as around 700 MW new capacity has been added to ACEPH’s portfolio, of which 60 percent was from renewables.
“ACEPH will now focus on renewable investments and we will not be making additional investments in coal plants. The company, however, remains open to thermal technologies such as gas or diesel-fired power plants that compliment our renewable assets and developments,” he added.
Last year, AC Energy ceded its stake in the 552-MW coal-fired power plant in Kauswagan, Lanao del Norte after transferring its indirect ownership interest to Power Partners Ltd. Co., in line with its move to rebalance its portfolio and to achieve its target of at least 5 gigawatts (GW) of RE attributable capacity by 2025.
Ayala Corp.’s power business sold to Aboitiz Power Corp. its 60 percent economic stake and 49 percent voting stake in AA Thermal Inc., which holds ownership interest in the 632-MW coal plant of GNPower Mariveles Coal Plant Ltd. Co. and the 1,336-MW supercritical coal plant project of GNPower Dinginin Ltd. Co., both in Bataan.
Meanwhile, Francia said ACEPH is exploring whether it is feasible to transition South Luzon Thermal Energy Corp.’s (SLTEC) feedstock to biomass. SLTEC owns and operates a 270-MW coal-fired power plant in Calaca, Batangas.
“It is also open to considering bringing in a partner and reducing its stake in the coal plant consistent with the company’s transition to a low carbon portfolio and coal divestment by 2030,” he added.
