AC Energy invests in diesel power plant
Credit to Author: Jordeene B. Lagare| Date: Thu, 19 Dec 2019 16:35:03 +0000
AC Energy Philippines Inc. (ACEPH) has acquired a stake in a company which will be developing a 300-megawatt (MW) diesel power plant in Rizal province.
ACEPH signed on Thursday a subscription agreement with Ingrid Power Holdings Inc. which will undertake a diesel facility in the municipality of Pililia. Construction of the first 150 MW will commence in the first quarter of 2020.
Under the deal, the Ayala subsidiary would subscribe to 50,000 common shares for P4.9 million and 5,651,000 redeemable preferred shares in Ingrid for P565.1 million.
The Ayala subsidiary has fully paid-in the common shares and paid 25 percent for the subscription of redeemable preferred shares.
“Issuance of the shares is subject to the necessary regulatory approvals for increase of Ingrid’s authorized capital stock and creation of new shares,” ACEPH said in a disclosure.
This is part of ACEPH’s plan to scale up its power capacity by next year. To achieve the target, the company will be building 550 MW of power projects in the country, with focus on renewable energy and peaking plants, or facilities that operate when there is high electricity demand.
Power plants in the pipeline include the 330-MW diesel power plant in Rizal; 120-MW solar power plant in Alaminos, Laguna; and another 60-MW solar facility in Palauig, Zambales.
ACEPH President and Chief Executive Officer Eric Francia said early this month the firm was expecting to commence construction of these power plants next year.
“The 330 MW is okay. For the 220 MW, just wait. We have a lot of projects that we’re developing,” he told reporters.
The firm was aiming to build around 1,300 MW of power plants by end-2020 from about 650 MW prior to the acquisition of Phinma Energy Corp. which was then renamed to ACEPH.
This was apart from the goal set by its parent company, AC Energy Inc., with the latter aspiring to exceed 5 gigawatts of attributable capacity and generate at least 50 percent of energy output from renewables by 2025.