AC Energy makes big push towards RE

    North Luzon Renewables wind farm in Pagudpud, Ilocos Norte forms part of AC Energy’s RE portfolio.

    AC Energy will start the construction next year of at least 1,500 megawatts (MW) of renewable energy (RE) projects in the Philippines, Australia, Vietnam and India.

    Eric Francia, AC Energy president and chief executive officer, said 500 MW will be in the Philippines, another 500 MW in Australia while the remaining 500 MW will be distributed between India and Vietnam.

    Francia said in a virtual briefing the company is “quite confident” it will achieve the 5,000 MW target RE capacity by 2025 as half of it can be realized as early as next year.

    At present, the group has RE capacities of 450 MW from local projects and another 900 MW from projects abroad which would total to 2,850 MW, including the 1,500 MW projects next year.

    Francia said the $2 billion required funding to develop the aspired 5,000 MW target RE portfolio has been secured.

    He said AC Energy $700 million in cash reserves with another $500 to $600 million expected to be raised from stock rights offering, follow-on offering and the private placement from Singapore-based sovereign wealth fund GIC Private Ltd.

    “With that, the gap will only be already at $500 to $600 million but we will deal with that later on since we will most probably need that come by 2024 or 2025,” Francia said.

    “We are really very bullish about the energy transition and it’s happening everywhere globally. We’d like to play a leading role in the energy transition towards the shifting to RE tech. It’s a very unique window of opportunity and we’ll be there to be leaders in the space,” he added.

    Based on equity interest in power generation businesses, the entire AC Energy Group currently owns approximately 1,800 MW of generation capacity both in operations and under construction.