Ayala energy unit to build solar plants worth P6.1 billion

MANILA, Philippines — Ayala Corp.’s energy unit is planning to build two new solar plants in Central Luzon in a bid to become Southeast Asia’s largest renewables platform by 2025.

In a disclosure to the stock exchange on Wednesday, Ayala-led AC Energy Philippines Inc. said the company board has approved the solar projects cumulatively worth P6.1 billion, which aim to generate a combined energy output of 150 megawatts (MW) by 2022.

“While we are facing significant challenges amidst the current crisis, ACEN remains committed to investing in the country and drive renewables expansion,” Eric Francia, company president and chief executive, said in a statement.

The first solar-powered plant will be located in Arayat and Mexico in Pampanga adding 75 MW to AC Energy’s power portfolio. The project, worth P3.2 billion, is a 50-50 joint venture between AC Energy and Citicore Renewable Energy Corp.

AC Energy said its board has approved an initial P500 million for the construction of the project, which is expected completed by the fourth quarter next year.

The second power plant, which will have the similar capacity with the first, will be established in Palauig, Zambales at a cost of P2.9 billion which the board also gave a go-signal to disburse on Wednesday.

The Zambales facility is seen operational by the first quarter of 2022 and will be situated close to the 60-MW GigaSol Palauig solar plant that is currently under construction.

With the two new solar facilities, AC Energy now holds a total of 480 MW in renewables, all of which are under construction. Broken down, 330 MW are solar plants, while the remaining 150 MW are peaking diesel plants. 

AC Energy targets to hike its renewables portfolio to 5,000 MW by 2025.

“We take the long view when investing, and we also recognize that investments are very much needed urgently to help reignite the economy and create jobs. This is the true meaning of sustainable investing,” Francia said.

On top of the solar projects, ACE Energy board also approved the investment of P5 billion to ACE Endeavor Inc., a subsidiary, to acquire land to be use for future energy generation building.

A separate P2.2 billion will also be shared by Bataan Solar Energy Inc. and Giga 4, Inc., also firm’s subsidiaries, to explore renewable project opportunities.

Minutes before market closed on Wednesday, AC Energy shares are trading up 0.74% at P2.71 apiece as of 12:42 p.m., bucking a benchmark decline.