ACEN inks power purchase deal with Australian firm

MANILA, Philippines — A subsidiary of Ayala-led ACEN Corp. and SmartestEnergy Australia have signed an eight-year power purchase agreement to offtake renewable electricity generated from its solar project.

ACEN Australia said the eight-year agreement provides SmartestEnergy with an offtake of 25 percent of the output of the 400-megwatt (MW) Stage 1 project, reducing the need for electricity that could otherwise be sourced at higher emissions intensity.

David Pollington, managing director at ACEN Australia, said the agreement is another milestone for the company’s inaugural project, which stands as a major contributor to the National Electricity Market (NEM).

“We have a bold strategy to help Australia transition to a clean energy future, and we are excited by this first offtake with SmartestEnergy, enabling us to bring more renewable energy projects to life and clean electricity for Australian homes and businesses,” Pollington said.

SmartestEnergy Australia CEO Robert Owens said the renewable energy purchased from ACEN would be made available to commercial and industrial customers throughout Australia.

“Our goal is to help Australian businesses procure 100 percent renewable energy to fast-track their net zero journey, and we are very pleased to be able to partner with ACEN who is leading the sustainable energy landscape that integrates community prosperity,” Owens said.

New England Solar is ACEN Australia’s first operational project, and the 400 MW first stage has been built with the support of host landholders, First Nations people, and the Uralla community.

At full development, the 720–MW project will be one of Australia’s largest solar projects participating in the NEM, providing clean renewable energy to power around 300,000 average Australian homes.

ACEN Australia is committed to the New England region for decades to come with more than AU$200,000 invested into the Uralla and surrounding community through the New England Solar Social Investment Program.

An additional AU$7 million in community funding will be invested over the next 25 years.

Meanwhile, ACEN reported a net income of P7.4 billion in 2023, 43 percent lower than the P13.1 billion booked in 2022, due to a “significant reduction in non-cash items.”

The energy firm attributed the decline in earnings to the P8.6 billion accounting adjustments from various events during the period.

Taking out the impact of all non-cash items, ACEN’s profitability jumped by 150 percent, driven by a nearly three-fold increase in core operating earnings.

Revenues rose by 3.6 percent to P39.5 billion from P35.24 billion, while cost and expenses grew by 2.9 percent to P39.2 billion from P38.08 billion.

“We look forward to 2024 with full commercial operations of newly commissioned plants, a continually growing pipeline, and in turn, continued progress toward our aspiration to achieve 20 GW in attributable renewables capacity by 2030,” ACEN president and CEO Eric Francia said.