Ayala-led power generation firm AC Energy Philippines Inc. has signed a subscription agreement with Ingrid Power Holdings Inc. for a diesel-fired power plant in Pililla, Rizal at a total price of P570 million.
In a disclosure to the Philippine Stock Exchange, the company said the deal involves P4.9 million for 50,000 common shares and P565.1 million for 5,651,000 redeemable preferred shares (RPS).
“The company has fully paid-in the common shares and paid 25 percent of the subscription of the RPS. Ingrid is developing a 300 megawatts (MW) diesel power plant in Pililla, Rizal.
Construction of the first 150 MW will commence in the first quarter of 2020,” AC Energy Philippines said.
Notably, the diesel-fired power project is among the firm’s planned projects next year, including a 120 MW solar plant in Alaminos, Laguna; 60 MW solar plant in Palauig, Zambales, as well as a potential expansion for wind power capacity.
Earlier, AC Energy Inc., AC Energy Philippines’ mother firm, announced plans to spend up to $1 billion next year to develop 1,500 MW worth of power projects located in the country and abroad.
Eric Francia, AC Energy president and chief executive officer, said the funds will mostly be utilized in renewable energy projects scattered throughout the Philippines, Vietnam, Australia, India and Myanmar.
Francia said for Australia, solar and pump hydro projects will be pursued, while Vietnam will mostly have wind power plants in order to benefit from the country’s feed-in-tariff premium for wind projects that can go online before November 2021.
AC Energy eyes solar projects in India, while a hybrid of mini-grids with solar-diesel-battery storage capability are planned for Myanmar.
Based on equity interest in power generation businesses, the entire AC Energy Group owns approximately 1.7 gigawatts (GW) of generation capacity in operation and under construction. It aspires to exceed 5 GW of attributable capacity and generate at least 50 percent of energy from renewables by 2025.