Ayala unit seeks to beef up power capacity

By Jordeene B. Lagare – December 6, 2019
from The Manila Times

AC Energy Philippines Inc. (ACEPH) is scaling up its existing power capacity by about half by the end of 2020, its top official said.

From the existing capacity of 650 megawatts (MW), ACEPH President and Chief Executive Officer Eric Francia said the figure will be doubled to 1,300 MW by next year.

“That’s where we expect to be at by end of 2020,” Francia told reporters.

To achieve the target, the energy subsidiary of the Ayala Group will focus on building renewable energy (RE) and peaking plants, or facilities that operate when there is high electricity demand.

Construction of all greenfield plants (or new power plants) will begin in 2020, according to the executive.

ACEPH, through AC Energy Development Inc., is putting up a 60-MW solar power plant in Palauig, Zambales.

The Ayala unit is also investing in a 120-MW solar farm project in Alaminos, Laguna as well as 150-MW diesel power plant in Pililia, Rizal. AC Energy DevCo Inc. shall develop both facilities.

Francia said the company is slated to issue the notice to proceed “very soon” for the power plants in the pipeline and expect construction to commence “in the next few weeks or months.”

For the Pililia diesel plant, the official said they will start with the first phase of the facility of which the capacity is 150 MW. “The plant capacity there is 300 MW,” he added.

This is part of their commitment to investors to develop 500 MW of power plants after the Ayala Group acquired ACEPH (formerly Phinma Energy Corp.) early this year.

Prior to the acquisition, Francia noted the total power capacity in the portfolio was 430 MW.

It was then increased to about 650 MW after purchasing Axia Power Holdings Philippines Inc.’s 20-percent stake in South Luzon Thermal Energy Corp. (SLTEC) and the Philippine Investment Alliance for Infrastructure’s (Pinai) controlling stake in solar farms located in Negros Occidental.

SLTEC, a joint venture of AC Energy, ACEPH, and Axia Power, owns and operates a 2 x 135-MW coal-fired power plant in Calaca, Batangas.

Pinai, on the other hand, has ownership interests in San Carlos Solar Energy Inc. (Sacasol) and Negros Island Solar Power, Inc. (Islasol).

Sacasol owns and operates a 45-MW solar farm in San Carlos City, which is part of the government’s feed-in tariff scheme that subsidizes renewable energy developers in the country.

Conversely, Islasol owns and operates the 80-MW solar farm in Negros Occidental.
ACEPH shares closed flat at P2.44 each on Thursday.