AYALA-LED AC Energy Philippines, Inc. (ACEPH) will be investing P2.2 billion to its two renewable energy units in part of its earlier commitment to boost investment in new energy technologies.
The Philippine-listed unit of AC Energy, Inc. told the stock exchange on Tuesday that its executive committee approved the planned fund infusion into Bataan Solar Energy, Inc. and Giga Ace 4, Inc.
The subscription deals for the investment is yet to be finalized by the company’s officials: Chief Executive Officer Eric T. Francia, Chief Finance Officer Maria Corazon G. Dizon, and Chief Development Officer Jose Maria Eduardo P. Zabaleta, who will decide on the subsidiaries’ specific investments.
It was on March 19 that the company’s board approved the plan to invest around $100 million in new technologies.
“The Company’s infusions into each of Bataan Solar and Giga Ace 4 will be used by the subsidiaries to further the opportunities presented by emerging clean energy technologies,” ACEPH said.
The fund will also be used for various development activities of the two units, such as securing land, undertaking project studies, installing new technology equipment, among others.
On Monday, ACEPH increased its stake in Giga Ace 4, along with its other special purpose vehicles, in part of its decision to become the controlling shareholder of those companies. It subscribed to 75,000 shares of the company which will be used to fund its administrative and operating costs.
Early this month, parent firm AC Energy announced that its joint venture with Hong Kong-based UPC Renewables Group is building a 140-megawatt (MW) solar farm in the desert state of Rajasthan.
The Sitara Solar project, which is estimated to cost around $68 million, will supply power to Solar Energy Corporation of India. It won the supply contract with the state-owned firm via a competitive bid at 2.48 Indian rupee per kilowatt-hour, fixed over a 25-year period.
The solar facility is expected to go online in the first quarter of 2021.
Shares in ACEPH rose by 4.05% to close at P2.31 each on Tuesday. — Adam J. Ang