AC Energy investing $20 million for 1-GW Asia solar farms

MANILA, Philippines — AC Energy Inc., the power generation business of the Ayala Group, is investing $20 million to build a one-gigawatt (GW) portfolio of solar projects across Asia.

The company has formed a joint venture with UPC Solar Asia Pacific—the solar platform of UPC Renewables—to expand their reach in the region.

AC Energy said the $20 million investment would be in the form of a development loan. It would also provide all the construction equity required for these projects initially eyed in India, South Korea and Taiwan.

UPC Renewables chairman Brian Caffyn said the joint venture would allow the group to accelerate development of projects in the region. 

“As partnerships and growth opportunities arise, we are always looking at ways to significantly scale up our renewable energy portfolio. AC Energy has always been focused on large-scale projects and is managed by a high-quality management team. We are grateful for their continuous support to the UPC group,” he said.

AC Energy’s investment comes at a time when UPC Solar Asia Pacific is about to start expanding its renewable energy platform, co-founder Pranab Kumar Sarmah said.

 “We are pleased to have AC Energy as our joint venture partner at a crucial point when UPC Solar is ready to accelerate construction activities of its pipelines and continue its humble journey to reduce carbon footprint. We aim to make this partnership a competitive regional solar project development and asset management platform,” said Pranab Kumar Sarmah, chief executive officer of UPC-AC Energy Solar.

Meanwhile, AC Energy chief operating advisor Patrice Clausse said the new venture would allow the company to achieve a balanced energy mix.

“AC Energy is very excited to invest in another partnership with UPC Renewables. Our move to enter into a large and bankable solar market like India is consistent with AC Energy’s goal to exceed 5,000 MW by 2025, with at least 50 percent to be sourced from renewables,” he said.

AC Energy and UPC Renewables first partnered in 2013 for the development, construction, and operations of North Luzon Renewable Energy Corp. (NLREC), an 81-megawatt (MW) wind farm project in Pagudpud, Ilocos Norte.

In 2017, the two groups invested in PT UPC Sidrap Bayu Energi, developer of a 75-MW wind farm in South Sulawesi, Indonesia, which marked the first overseas venture of AC Energy.

Last year, AC Energy invested $30 million to acquire 50 percent of the Australian business of UPC Renewables now called UPCAC Renewables. The Ayala firm also provided a $200-million facility to fund project equity. 

The power business of the Ayala Group targets a 5,000-MW capacity by 2025. Last year, it generated 2,800 gigawatt-hours of energy, of which 48 percent was from renewable sources.