AC Energy Holdings Inc. has signed investment agreements with UPC Renewables Indonesia Ltd for the development, construction, and operation of a 75 megawatts (MW) wind farm project in Sidrap, South Sulawesi.
Total cost of the project is $150 million.
The firm said the Sidrap project is targeted for completion by the end of the year and will be the first utility-scale wind farm project in Indonesia once completed. It is also the first greenfield offshore investment of AC Energy Holdings Inc., through its affiliate, AC Energy International Holdings Pte Ltd., a Singapore private limited company.
AC Energy said the project will be developed through PT UPC Sidrap Bayu Energi, a special purpose company based in Indonesia and will be funded through equity and project financing to be provided by the Overseas Private Investment Corp., the US government’s development finance institution, and PT Bank Sumitomo Mitsui Indonesia, the Indonesian subsidiary of the Sumitomo Mitsui Banking Corporation of Japan.
UPC Renewables is a leading global energy player that develops, finances, constructs, owns and operates a portfolio of wind power generation assets. It has successfully developed and operated renewable energy projects in Italy, the United States, Canada, China and the Philippines.
UPC Renewables and AC Energy Holdings, Inc. are two of the owners of North Luzon Renewable Energy Corp., owner and operator of the 81 MW Caparispisan wind farm project in Pagudpud, Ilocos Norte.
Last week, AC Energy signed definitive documents to sell all of its ownership stake in hydro power firms QuadRiver Energy Corp., Philnew Hydro Power Corp. and PhilnewRiver Corp. to Sta. Clara Group, Inc.
AC Energy, as part of an Indonesian consortium and a Philippine consortium also recently signed share sale and purchase agreements with Chevron Global Energy Inc., Union Oil Company of California and their relevant affiliates for the purchase of Chevron’s geothermal operations in Indonesia and the Philippines.
AC Energy said that the transaction particularly the acquisition of the local asset is subject to obtaining certain consents and approvals including the approval of the Philippine Competition Commission.
In Indonesia, Chevron subsidiaries operate the Darajat and Salak geothermal fields in West Java, with a combined capacity of 235 MW equivalent of steam and 402 MW of electricity. In the Philippines, Chevron subsidiaries have a 40 percent equity interest in the Philippine Geothermal Production Company, Inc. which operates the Tiwi and Mak-Ban geothermal field in Southern Luzon and supplies steam to power plants with a combined name plate capacity of around 700 MW.
At present, among the power projects where the firm is involved in include the coal plants 604 MW GN Power Mariveles and 668 MW GN Power Dinginin in Bataan; 244 MW South Luzon Thermal Energy in Batangas and 552 MW GN Power Kausawagan in Lanao del Norte. Also, the 81 MW North Luzon Renewables and 52 MW Bangui wind farm in Ilocos Norte and the 18 MW Montesol solar farm in Bais, Negros Oriental.