AC Energy eyes big league, ramps up capacity target

MANILA, Philippines — AC Energy, the power business of Ayala Corp., is entering the big league in the power industry as it ramps up its capacity target to 5,000 megawatts (MW) by 2025, company officials said.

AC Energy president and CEO Eric Francia said the Ayala Group is eyeing to become a big player in the power industry both here and abroad.

“Our goal is to exceed five gigawatts (GW) of capacity by 2025. We will do this by growing both in the Philippines and around the region,” he said.

In a text message, Francia said the five-GW goal would require over $2 billion in equity.

“This is a very exciting time to be in the energy sector…technology is rapidly evolving, new markets are opening up and our company is expanding tremendously,” he said.

Earlier, AC Energy has set a 2,000-MW target by 2020 but is looking to reach that capacity a year earlier as it invests in more renewable energy (RE) projects to close the gap with its thermal portfolio.

The decision to enter the power sector has bore fruit not only for the group, but also for the country’s progress as it is close to hit its previous target, Ayala chairman and CEO Jaime Augusto Zobel de Ayala said.

“From a standing start, AC Energy has quickly grown into a significant power company. In just five years, it was able to exceed a thousand megawatts in capacity, with strong platforms of thermal and renewable energy,” he said.

It currently has 1,300 MW of thermal generating capacity and 300 MW for RE.

At the start of the year, the Ayala Group decided to split its energy business into two wholly owned subsidiaries—AC Renewables Inc. and ACE Thermal Inc.—for greater flexibility in expanding its project portfolios.

Further, it has created subsidiaries for local and overseas investments.

To meet the new capacity target, AC Energy is looking at the broader Southeast Asian region to expand its portfolio, AC Energy chairman Fernando Zobel de Ayala said.

“We started as a company that was really focused in the Philippines. We’re gradually investing abroad and I see this really ramping up as we move ahead,” he said.

So far, AC Energy has entered the Indonesian and Vietnamese power markets as part of its overseas expansion.

In Indonesia, it is developing the 75-MW Sidrap wind farm in partnership with UPC Renewables Indonesia Ltd. It also operates 637 MW of steam and power from the Darajat and Salak geothermal fields in West Java, through joint venture firm Star Energy Geothermal (Salak-Darajat) B.V. with Star Energy Group Holdings Pte. Ltd., Star Energy Geothermal Pte. Ltd. and Electricity Generating Public Co. Ltd.

In Vietnam, it has partnered with BIM Group of Vietnam to jointly develop over 300 MW of solar power projects in Ninh Thuan province.

At home, its conventional power projects include the 668-MW GN Power Dinginin Ltd. Co. coal plant in Bataan, the 604-MW GNPower Mariveles, the 2x135-MW coal-fired power plant in Calaca, Batangas under South Luzon Thermal Energy Corp. and the 4x135- MW coal-fired power plant in Kauswagan, Lanao del Norte in Mindanao through GN Power Kauswagan Ltd. Co.

Under its RE portfolio are the 52-MW Northwind Power Development Corp. in Bangui, Ilocos Norte; the 81-MW wind farm in Pagudpud, Ilocos Norte through its affiliate NLREC and the 18-MW solar plant in Negros Oriental, a joint undertaking with Bronzeoak Clean Energy Inc.