AN AFFILIATE of AC Energy Holdings, Inc. has entered in a deal to develop small island power projects in Indonesia with a partner for one of its projects in north Luzon.
In a statement on Monday, AC Energy said its affiliate AC Energy International Holdings Pte Ltd. had entered into a development funding arrangement with UPC Renewables Asia Pacific Holdings Ltd. and UPC Renewables Asia I Ltd. for the Indonesia projects.
“This agreement will broaden AC Energy’s participation in the Indonesian market, as well as deepen our strategic partnership with UPC Renewables,” said John Eric T. Francia, AC Energy president and chief executive officer.
“Indonesia has huge unserved demand especially in smaller islands, which this initiative aims to address,” he added.
Under the terms of the agreement, AC Energy International agreed to provide funding for the development of power generation projects with capacities of below 50 MW.
AC Energy, in turn, will also have accompanying rights to participate in further construction funding of other Indonesian renewable energy projects.
AC Energy, a subsidiary of Ayala Corp., began its partnership with UPC Renewables in 2013 when they developed, built and started operating North Luzon Renewable Energy Corp., the entity behind the 81-megawatt (MW) wind farm project in Pagudpud, Ilocos Norte.
In January, AC Energy and UPC Renewables reached financial closing for a 75-MW Sidrap wind farm joint venture project in South Sulawesi, Indonesia. It described the project as “the first ever utility-scale wind farm project in Indonesia with an expected operations date of February 2018.”
UPC Renewables, a global energy player, develops, finances, constructs, owns and operates a portfolio of renewable energy generation assets. Along with its partners, UPC Renewables have developed and operated renewable energy projects in Italy, US, Canada, China and the Philippines.
The new agreement in Indonesia places AC Energy is in line with the company’s aim to develop by 2020 up 2,000 MW of capacity, of which 1,000 MW is targeted to come from renewable energy. The company has installed 1,000 MW as of 2016 from a mix of energy resources.
Mr. Francia earlier said that of the company’s roughly $1-billion investments, 20% was placed in Indonesia. Aside from the Sidrap wind farm, AC Energy has also acquired Chevron Corp.’s geothermal operations in Indonesia.
In the Philippines, AC Energy has a 20% stake in the 632-MW GNPower Mariveles Coal Plant Ltd. Co.; 50% in the 668-MW GNPower Dinginin Ltd. Co.; 35% in the 244-MW South Luzon Thermal Energy Corp.; and 85% in the 552-MW GNPower Kauswagan Ltd. Co.
Its 19.8% stake in the 637-MW geothermal steam and power capacity in Darajat and Salak geothermal fields along with its 75% stake in the 75-MW wind farm project in Sidrap more than doubled the company’s clean energy capacity to at least 264 MW.
Shares in Ayala Corp. were unchanged at P880 apiece on Monday. — Victor V. Saulon
