Ayala Group expects power capacity to hit 1,000 MW

MANILA, Philippines - The Ayala Group, one of the country’s biggest conglomerates, expects its energy business to complete a power capacity of 1,000 megawatts by end-2014, a ranking official said.

AC Energy Holdings Inc., Ayala’s holding company for its power investments, said the company is on track to meeting the 1,000-MW goal by the end of next year, with its ongoing acquisitions and projects.

“By the end of next year, we have enough projects to reach 10,000-MW,” AC Energy president Eric Francia said.

To date, AC Energy’s partnerships with existing power industry players, have put the company’s capacity to roughly 600 to 700 MW.

“Over time, I think we can get to the 1,000-MW net equity. We’re not there yet but we will. There’s still scope to add some more. Right now it’s 600 to 700-MW,” Francia said.

In terms of investments, AC Energy has so far invested in roughly $400 million for new projects and an additional  $300 million to reach the 1,000-MW goal.

The company is currently engaged in talks with existing power players for possible partnerships but declined to provide more details, saying that nothing is final yet.

On Friday, the company said that together with its partner GN Power Ltd., it is set to start the construction of the 405-megawatt coal-fired power plant in Kauswagan, Lanao del Norte in the first half of 2014.

GN Power earlier signed a power purchase with 20 Mindanao electric cooperatives for the plant.

For the rest of its projects in the pipeline, AC Energy will go for a combination of conventional energy and a smaller portion in the renewable energy, Francia said.

 In 2012, Ayala began the construction of a 2x135 MW circulating fluidized bed (CFB) in Calaca, Batangas. In December last year, AC

Energy also signed an agreement for a strategic stake in GNPower Mariveles Coal Plant, which owns a 2x300MW CFB coal plant in Bataan.

In the renewable energy sector, AC Energy is also actively developing renewable energy platforms in wind and mini hydro-projects in various parts of Luzon and Mindanao.