ACEN to boost renewables portfolio via joint venture

AC Energy Corp. (ACEN) and Solar Philippines Power Project Holdings Inc. (SP) are forming a joint venture for the development and construction of solar projects in the Philippines.

In a filing to the local bourse, the Ayala-led company said it is teaming up with the group of Leandro Leviste, whose company has been developing solar farms and rooftop solar solutions for almost a decade now.

This will help the Ayala group in its bid to scale up its renewables portfolio to about 2,500 megawatts (MW) in 2021 and 5,000 MW by 2025.

In separate filings to the local bourse, ACEN said it is buying 244,000 common shares from SP in Solar Philippines Central Luzon Corp. (SPCLC) for P244,000.

“The acquisition will allow ACEN to have a significant ownership interest in SPCLC and is meant to implement the joint venture between ACEN and SP for the development of solar power projects in the Philippines,” a disclosure read.

ACEN also subscribed to 375,000 common shares, which will be issued out of the unissued authorized capital stock of SPCLC, for P375,000.

SPCLC is a special purpose vehicle for the development and operation of solar power projects. With the acquisition, ACEN will own 94.6 percent of the company, providing it with the “opportunity to earn stable dividend income from the operations of the solar power projects.”

In a related development, ACEN’S board of directors has approved the sharing of ACEN’S credit facilities with its wholly-owned subsidiary, Santa Cruz Solar Energy Inc. (SCSEI) to enable SCSEI to participate in auctions for electricity supply.

ACEN’S board also approved the lease of land in Alaminos, Laguna from Crimson Field Enterprises Inc. and Red Creek Properties Inc., both of which are subsidiaries of Ayala land Inc, for its eco-learning hub.

In November 2020, ACEN said it has set its sights on achieving half of its target of 5,000MW renewable energy (RE) capacity this year.

Of the target, ACEN President Eric Francia said 1,500MW of RE projects are lined up for 2021. “We have 1,500MW worth of projects in the region including Philippines [500MW], Australia [500MW] and the remaining 500MW in India and Vietnam. Those four markets, we expect to build 1,500MW.”

ACEN, which has 1,000MW of capacity in its portfolio, will integrate its international business, which currently has 900MW RE capacity.

The company aspires to be the largest listed renewables platform in Southeast Asia, with the goal of reaching 5,000 MW of renewables capacity by 2025.

“To us, it’s a very unique window of opportunity and we will be there to make sure we will be leaders in the RE space. Our aspiration is to be the largest listed RE in Southeast Asia.”

To make it happen, the company needs equity of $1.8 to $2 billion. Francia had said that the company has lined up various sources of capital requirements.

“We have existing cash reserves of about $700 million and then we have a series of fund raising activities, such as stock rights offerings, private placement and follow-on offering, which we are targeting [in 2021]. Among those three fund raising activities, we expect to raise an additional $500 to $600 million to add to our existing cash reserves of $700 million.”