AC Energy to expand solar farm dev’t in Vietnam

AC Energy, the energy business group of Ayala Corp., is taking more part in the $300-million solar development in Vietnam, its top official said yesterday.

On the sidelines of the Asia CEO forum yesterday, AC Energy chief executive officer Eric Francia said the company and its Vietnamese partner BIM Group of Vietnam have the potential to develop 300 megawatts (MW) of solar farms in the country.

This after the Vietnamese government came out with feed-in tariff (FIT) incentives for solar, which shall be valid from June 1, 2017 to June 30, 2019.

“In Vietnam, we’re hopeful that we will break ground on much more than 30 MW,” he said.

Francia said one MW of solar project is estimated to cost $1 million.

BIM Group is a diversified corporation that has successfully established its mark in four main business fields namely: tourism development and real estate investment, agriculture – food, commercial services and renewable energy.

So far, the partners have broken ground on an initial 30 MW solar project in Ninh Thuan province, which is estimated to have an investment cost of VND 800 billion, equivalent to roughly P1.8 billion.

AC Energy earlier said Vietnam would be its second regional investment in Asia since it has a similar macroeconomic picture with Indonesia and the Philippines.

The Ayala Group also has a presence in Vietnam through Manila Water Co. Inc. under local units Thu Duc Water and Kenh Dong Water as well as through infrastructure firm Ho Chi Minh City Infrastructure Investment Joint Stock Co. (CII).