Ayala sets $2-billion RE investments
Published Sep 17, 2019 12:00 am
By Myrna M. Velasco
The energy investment arm of Ayala group will roll out $2.0 billion worth of capital outlay for targeted 2,000 megawatts of renewable energy (RE) capacities to be installed in various parts of the country in a span of 5-6 years.
AC Energy President and CEO Eric T. Francia
For that scale of investments, AC Energy Philippines President and CEO Eric T. Francia indicated that the equivalent equity to be shelled out by the company shall be $600 million.
“The average cost per megawatt on a per project basis between solar and wind is about $1.0 million per megawatt – wind is closer to $1.5 million to $1.6 million. Solar is closer to $600,000 to $800,000. So just assume roughly a million per megawatt, that’s just under $2.0 billion of project cost,” the Ayala executive explained.
In terms of capacity installations, he emphasized that the additional builds will be roughly 1,850 megawatts for the domestic market – shoring up current capacity of about 150 megawatts (that’s comprising of the attributable 62MW RE capacity of its PHINMA Energy acquisition and roughly 100MW for AC Energy).
Francia qualified that the Philippine investment target is part of the 5,000MW installations that the company is targeting until 2025 – both for domestic and offshore markets.
And since the calculation will be a combination of the RE capacities for both its AC Energy portfolio and that of PHINMA Energy acquisition, Francia noted that the equivalent RE capacity build-up they shall achieve overseas would be at the magnitude of 3,500MW.
“As you recall, we have a 2025 vision for AC Energy Inc, through our parent which is 5,000MW of renewables – of which 2,00MW will come from Philippines,” Francia expounded.
Implementation of projects within the country will be stretched over several years, he said, but the first hundreds of megawatts may already take off from blueprints soon.
In fact, the company announced previously that it may already advance to construction phases some 100-200 megawatts of solar projects in Luzon within the next 12 to 18 months.
For offshore RE projects, main prospects according to Francia, will be those with giga-market potential such as Australia and Vietnam; and also Indonesia.
In yesterday’s annual stockholders meeting of its PHINMA Energy acquisition, the company announced the creation of 16 billion shares that warrants it to fetch proceeds of up to P50 billion – if based on the company’s current stock price of less than P3.00 per share.
The increased shares will subjected to a share swap with its renamed corporate vehicles AC Energy Philippines; and the balance of the shares will also be aligned eventually for stock rights offering.
The timing of the SRO, he qualified, will be determined after October 9 this year – and the size and value will depend on the recommendation of its third party valuator FTI Consulting.
AC Energy President and CEO Eric T. Francia
For that scale of investments, AC Energy Philippines President and CEO Eric T. Francia indicated that the equivalent equity to be shelled out by the company shall be $600 million.
“The average cost per megawatt on a per project basis between solar and wind is about $1.0 million per megawatt – wind is closer to $1.5 million to $1.6 million. Solar is closer to $600,000 to $800,000. So just assume roughly a million per megawatt, that’s just under $2.0 billion of project cost,” the Ayala executive explained.
In terms of capacity installations, he emphasized that the additional builds will be roughly 1,850 megawatts for the domestic market – shoring up current capacity of about 150 megawatts (that’s comprising of the attributable 62MW RE capacity of its PHINMA Energy acquisition and roughly 100MW for AC Energy).
Francia qualified that the Philippine investment target is part of the 5,000MW installations that the company is targeting until 2025 – both for domestic and offshore markets.
And since the calculation will be a combination of the RE capacities for both its AC Energy portfolio and that of PHINMA Energy acquisition, Francia noted that the equivalent RE capacity build-up they shall achieve overseas would be at the magnitude of 3,500MW.
“As you recall, we have a 2025 vision for AC Energy Inc, through our parent which is 5,000MW of renewables – of which 2,00MW will come from Philippines,” Francia expounded.
Implementation of projects within the country will be stretched over several years, he said, but the first hundreds of megawatts may already take off from blueprints soon.
In fact, the company announced previously that it may already advance to construction phases some 100-200 megawatts of solar projects in Luzon within the next 12 to 18 months.
For offshore RE projects, main prospects according to Francia, will be those with giga-market potential such as Australia and Vietnam; and also Indonesia.
In yesterday’s annual stockholders meeting of its PHINMA Energy acquisition, the company announced the creation of 16 billion shares that warrants it to fetch proceeds of up to P50 billion – if based on the company’s current stock price of less than P3.00 per share.
The increased shares will subjected to a share swap with its renamed corporate vehicles AC Energy Philippines; and the balance of the shares will also be aligned eventually for stock rights offering.
The timing of the SRO, he qualified, will be determined after October 9 this year – and the size and value will depend on the recommendation of its third party valuator FTI Consulting.