Ayala unit to spend P16B for solar farm’s expansion

BY LENIE LECTURA AND VG CABUAG – JANUARY 26, 202
from Business Mirror

ACEN Corp., the listed energy platform of the Ayala Group, said it has allotted P16 billion for the expansion of its solar power project in Zambales.

The company said on Wednesday that the construction of the 300megawatt (MW) Palauig 2 solar farm is underway.

“This expansion of our Palauig solar assets comes at an exciting time for ACEN’s Philippine operations as we are relying on our core market to boost our energy transition efforts in the region.

Palauig 2 solar is the first of several new plants to commence with major construction works this year, and the need to sustain this accelerated pace towards the exponential growth of the renewables space is on top of our agenda,” ACEN Chief Development Officer Jose Maria Zabaleta said in a statement.

Palauig 2 solar farm will be constructed near the 63MW Palauig 1 solar project.

The company has tapped ERS Energy Pte. Ltd. (ERS) and Global Electric Power Development Corp. (GEC) as Engineering Procurement and Construction (EPC) contractors.

ACEN said the cost of the new development, including the construction of the 1,200 MW transmission line, is estimated at P16 billion, adding that 540 MWpeak high-efficiency solar panels will be supplied by module manufacturer, Seraphim.

The company said this solar power project also aims to support the country’s target of reaching the 35 percent renewable energy share in the power generation mix by 2030.

Palauig 2 solar is expected to produce over 450 gigawatt hours (GWh) of clean energy per year, and together with Palauig 1 solar’s 90 GWh output, can sustainably power the equivalent of around 139,000 homes and avoid 350,000 tons of carbon emissions annually.

ACEN has about 4,000 MW of attributable capacity from owned facilities in the Philippines, Vietnam, Indonesia, India, and Australia, with a renewable share of 98 percent, which is among the highest in the region.

The company wants to become the largest listed renewables platform in Southeast Asia, with a goal of reaching 20 GW of renewables capacity by 2030. ACEN is committed to transition the company’s generation portfolio to 100 percent renewable energy by 2025 and to become a Net Zero greenhouse gas emissions company by 2050.

In another development, ACEN disclosed that it signed definitive agreements with Provincia Investments Corp. (PIC) and Solar Philippines Power Project Holdings Inc. (Solar PH) in relation to the P1-billion Omnibus Loan and Security Agreement (OLSA).

It can be recalled that ACEN and Solar PH signed in January 2021 agreements for a proposed joint venture for solar power plant projects in Central Luzon. Pursuant to this, ACEN and PIC, an affiliate of Solar PH, signed the OLSA for a loan with a repayment date of July 2, 2026 secured by a pledge over shares owned by Solar PH in SP New Energy Corp. (SPNEC), formerly Solar Philippines Nueva Ecija Corp.

ACEN’s Executive Committee, which acted on authority from the ACEN Board of Directors, approved on January 25 the definitive agreements whereby ACEN will receive from Solar PH 500 million shares in SPNEC as pre-payment for part of the loan’s principal, and payment of interest and arrangement and security amendment fees.

SPNEC shares have a market value of P660 million as of January 24.

SPNEC said it has fully secured the majority of its target lands in Nueva Ecija and in Bulacan, which spans a combined 3,000 hectares, which it will convert for industrial purposes.

The company said documentation is now ongoing to complete its acquisitions, in parallel to the submissions of the already fully secured lands for conversion.

SPNEC said it aims to complete the submissions of these lands for conversion by the end of first quarter and convert over 3,000 hectares to industrial use by the end of the year.

“Converting over 3,000 hectares for industrial use is the most significant value driver for SPNEC, and we will provide further updates as we work to create value on this for our shareholders. Land underpins an entire project, and our landbank in Nueva Ecija and Bulacan in particular is unique, in terms of its scale and proximity to Manila,” Solar Philippines founder Leandro Leviste said.