ACEN Corp. is set to further expand its wind energy portfolio in the country, signing definitive agreements with Copenhagen Infrastructure Partners’ (CIP) Growth Markets Fund II to acquire a 25 percent minority stake in CIP’s proposed offshore wind (OSW) project in San Miguel Bay, Camarines Sur.
ACEN, Ayala group’s listed energy company, said in a statement on Thursday the move will still need regulatory approvals. It has not disclosed the amount involved in the transaction.
ACEN’s existing wind energy projects in the country are currently at 417 megawatts (MW), four of which are located in Ilocos Norte and another one in Guimaras. They are all onshore facilities.
CIP is a global renewable energy investor headquartered in Copenhagen, Denmark, but also has offices in the Philippines, United States, Japan, Netherlands, Germany, Australia, Singapore, United Kingdom, Luxembourg, South Korea and Spain.
The company said the Camarines Sur project is set to become one of the Philippines’ first offshore wind projects with a potential installed capacity of up to 1,000 MW.
The project is also considered among the most advanced offshore wind initiatives in the country which leverages strategic site conditions, including abundant wind resources, shallow water depths, and closeproximity to the shore and the nearest substation.
ACEN added that the location of the project also presents lower typhoon risk, further ensuring stability in operations as it is currently in its pre-development stage in anticipation of the Department of Energy’s fifth round of the Green Energy Auction to secure incentivized rates.
“Offshore wind is poised to play a vital role in diversifying the country’s energy mix. ACEN is pleased to partner with CIP, a global leader in the offshore wind sector. We look forward to collaborate on this trailblazing initiative,” said Eric Francia, ACEN president and chief executive officer.
The parties also said that so far, the Camarines Sur project has already obtained a Wind Energy Service Contract (WESC) in 2023. In February 2024, it was also granted Green Lane status by the Philippine Board of Investments to help expedite the processing of necessary licenses and permits.
In October 2024, the project also secured a Certificate of Energy Project of National Significance, granting it priority processing and expedited approvals from permitting agencies, government agencies, local government units, and other relevant authorities.
The project also received in October 2024 a pre-development Environmental Compliance Certificate, which enables the developer to conduct offshore site surveying. Last February, the project signed a connection agreement with the National Grid Corporation of the Philippines, securing access to grid connection.
Amid such developments, Robert Helms, Partner at CIP’s Growth Markets Fund II, said that they see ACEN as a local developer with “domestic and international track record in project execution and stakeholder management.”
“We are also working towards the ambition of making this one of the first operational offshore wind projects in the Philippines in line with the offshore wind targets set by the current Philippine administration,” Helms added.
Last year, Helms said that CIP has already secured WESCs for 2,000 MW worth of projects for offshore and another 300 MW for onshore facilities scattered in areas in Samar and Pangasinan, as well as the Camarines Sur prospect.
CIP also said then that overall, it is preparing capital expenditure of $5 billion for the 2,000 MW of OSW projects and a further $500 million for the 300 MW of onshore wind projects, including the one in Camarines Sur.
Earlier this year, the Department of Energy said it is assisting 16 frontrunner OSW projects with a total potential capacity of 16,652 MW. They are committed to start construction at the latest by 2027 and to generate electricity by 2028.
ACEN as a group aims to increase its renewable energy capacity to 20,000 MW by 2030 to help provide clean, reliable and affordable energy to more people and to also become a Net Zero greenhouse gas emissions company by 2050.
Apart from the Philippines, ACEN also has energy projects in Australia, India, Lao PDR, United States of America, Indonesia, Malaysia, Vietnam, Bangladesh and Taiwan.
