ACEN spending P8.7 billion for Zambales solar farm

MANILA, Philippines — Ayala-led ACEN Corp. is injecting an additional investment of P8.7 billion into a wholly owned subsidiary for the construction of its second-biggest solar farm in Zambales.

The Ayala Group’s listed energy platform told the stock exchange that it signed a contract with Giga Ace 8 Inc. for the subscription of an aggregate of 321.88 million shares.

Giga Ace 8 is ACEN’s special-purpose vehicle for the development of renewable energy projects in the country.

The subscribed shares consist of common A shares, redeemable preferred shares and redeemable preferred C shares, to be issued out of the increase in the subsidiary’s authorized capital stock.

ACEN said the partial payment was P2.17 billion, while the balance will be settled once the Securities and Exchange Commission approves Giga Ace 8’s capital stock hike.

It said the subscription would be used as “additional funding for the proposed 300.011 MWp (megawatt-peak) and 237 MW AC (alternating current) Palauig Solar 2 project.”

Palauig Solar 2 is being built over a 275-hectare property near ACEN’s 63 MW Palauig Solar 1.

The energy firm earlier said that the Palauig Solar 2 is expected to produce more than 450 gigawatt hours of clean energy annually.

Together with Palauig Solar 1’s 90 GWh output, the solar farms can sustainably power an equivalent of around 139,000 homes and reduce 350,000 tons of carbon emissions per year, ACEN claimed.

The company previously said the cost of the new development, including the construction of a 1,200-MW transmission line, would be roughly P16 billion.

“This expansion of our Palauig solar assets comes at an exciting time for ACEN’s Philippine operations, as we are relying on our core market to boost our energy transition efforts in the region,” ACEN CEO and chief development officer Jose Maria Zabaleta said.

Last December, ACEN inked an agreement with Giga Ace 8 for the subscription to 88.8 million shares, valued at P2.4 billion.

Currently boasting around 4.8 GW of renewable capacity across the Philippines, Australia, Vietnam, Indonesia and India, ACEN aims to reach 20 GW of green energy capacity by 2030.