Philippine conglomerate Ayala’s arm forges $83m solar JV in Vietnam

AC Energy's solar plant in Montesol, Negros Oriental, Philippines. Photo from AC Energy's website.

AC Energy, a wholly owned subsidiary of Philippine-listed conglomerate Ayala Corporation, is investing more than $40 million in a joint venture that will develop solar plants in Vietnam.

The solar plants, estimated to cost $83 million, will produce a total of 80 megawatts once operational in time for the June 2019 solar feed-in tariff deadline in Vietnam.

In a disclosure to the Philippine Stock Exchange on Monday, Ayala Corporation said AC Energy has signed engineering, procurement, and construction (EPC) contract and financing documents with AMI Renewables Energy Joint Stock Co for the development of solar plants in the provinces of Khanh Hoa and Dak Lak.

AC Energy will participate with at least 50 per cent economic share.

Indovina Bank of Vietnam and RCBC of the Philippines will provide non-recourse financing for the Dak Lak and Khanh Hoa projects, respectively.

“We appreciate the strong commitment of Vietnam government to promote renewables, and the strong support from our banking partners that are providing project finance,” said AC Energy president and CEO Eric T. Francia.

AC Energy formed a platform company with AMI Renewables last year to build renewable energy plants in Vietnam, including the 352 MW Quang Binh wind project.

“We are excited to expand our development initiatives in Vietnam and work with our local partner AMI Renewables,” Francia said.

In January of this year, AC Energy forged a partnership with another Vietnam-headquartered firm, BIM Group, to jointly develop over 300 megawatts of solar projects in Vietnam’s Ninh Thuan province.

The initial phase of the solar project broke ground on the same month, with the investment for this phase expected to reach VND 800 billion ($35.2 million). The first phase is set to be completed within a year.

“AC Energy is very keen to participate in the fast-growing Vietnam power sector, with pioneering investments in renewable energy,” said Francia.

The Vietnam solar projects are part of AC Energy’s overall goal of expanding beyond the Philippines and growing its presence in Southeast Asian markets. The firm hopes to exceed 5,000 MW of attributable capacity and generate at least 50 per cent of energy from renewables by 2025.

AC Energy earlier announced plans to sell as much as 50 per cent of its thermal or coal energy assets to raise up to $1 billion that will finance its regional expansion plans.

Also Read:

Philippines: Ayala’s AC Energy in pact with Vietnam’s BIM Group for solar projects

Philippines: Ayala’s AC Energy invests $30m in Australian power JV

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
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