Philippine conglomerate Ayala Corp through its power subsidiary AC Energy Holdings Inc signed investment agreements with UPC Renewables Indonesia Ltd for the development, construction, and operation of the $150 million Sidrap wind project in Indonesia.
Located in South Sulawesi in Indonesia, the Sidrap Project is the first utility-scale wind farm project in the country targeted to have a generating capacity of 75 MW and is expected to be completed before 2017 ends.
The project will be developed through PT UPC Sidrap Bayu Energi, a special purpose company based in Indonesia.
Financial details of Ayala’s investment in the project were not disclosed.
The Sidrap Project is the first greenfield offshore investment of AC Energy, through its affiliate AC Energy International Holdings Pte Ltd, a Singapore private limited company.
The Sidrap Project will be funded through equity and project financing to be provided by the Overseas Private Investment Corp, the US government’s development finance institution, and PT Bank Sumitomo Mitsui Indonesia, the Indonesian subsidiary of the Sumitomo Mitsui Banking Corp of Japan.
UPC Renewables is a global energy player that develops, finances, constructs, owns, and operates a portfolio of wind power generation assets. The company and its proponents have successfully developed and operated renewable energy projects in Italy, the USA, Canada, China, and the Philippines.
UPC Renewables and AC Energy Holdings are two of the owners of North Luzon Renewable Energy Corp, the owner and operator of the 81 MW Caparispisan wind farm project in Pagudpud, Ilocos Norte province in the Philippines.