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AC Energy approves nearly P11B in funding for solar, wind projects

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AYALA-led AC Energy Philippines, Inc. (ACEN) has approved a total of P10.81 billion in funding for a solar energy project and a wind farm, the firm told the local bourse on Thursday.

Its board of directors greenlit the financing of a solar plant project in Arayat and Mexico, Pampanga, through a secured loan, which would cover 100% of the project cost at P3.33 billion.

The firm also authorized the P7.48-billion funding of a wind farm project in Pagudpud, Ilocos Norte. This would take up 70% of the total project cost.

ACEN also approved the preparatory works needed for the planned follow-on offering, and a special audit of the company’s increase in authorized capital stock with multidisciplinary professional services firm SyCip Gorres Velayo & Co.

Last month, AC Energy President and Chief Executive Officer Eric T. Francia said that the firm had plans to sell its investments in coal-fired power plant projects in Bataan and Lanao del Norte in line with its goal to generate more than half of its energy from renewables in five years’ time.

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Mr. Francia earlier said that financiers of renewables were able to limit their financial risks because they could invest in smaller amounts in those projects.

“The advantage of renewables, I should say, is that you can do your investments in digestible, reasonable chunks, unlike a large scale thermal plant where you typically invest billions of dollars,” he said during a webinar organized by the Philippine Energy Independence Council and the European Chamber of Commerce of the Philippines on Nov. 23.

Shares in ACEN on Thursday inched down by 0.16 % to close at P6.16 apiece. — Angelica Y. Yang

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