Ayala’s ACEN provides P1.9-B capital to solar power unit
ACEN Corp. is providing an additional P1.9-billion capital to subsidiary Natures Renewable Development Corp. (Naredco). The fresh funds are meant to support Naredco’s solar power operations.
In a disclosure on Wednesday, the energy unit of the Ayala Group said it subscribed to about 420,000 redeemable preferred shares. These are priced at P4,527.16 apiece.
The company said the injection of funds will help Naredco finance its operating expenses. A portion of the investment will also be used to settle Naredco’s debts.
Naredco is a joint venture between ACEN and Cleantech Renewable Energy 4 Corp. Acen holds a 60-percent interest.
Naredco operates the Cagayan Solar Power plant. It can generate energy at a peak of 133.464-megawatts. It can power some 75,000 households.
Just last week, ACEN also injected about P900 million for its wind power project in the provinces of Quezon and Laguna.
Giga Ace 6 is the group’s special purpose vehicle for the development of the 553-MW onshore wind facility. This is called the Quezon North Wind Power project.
The group has a roster of renewable energy projects here and abroad. It hopes to grow its portfolio to 20,000 MW by 2030. Currently, it has 7,000 MW.
Focusing on renewables, ACEN officially divested from its remaining diesel-fired plants last September. These include Bulacan Power Generation Corp., One Subic Power Generation Corp. and CIP II Power Corp.
These firms serve as special purpose vehicles that manage power plants in Luzon. These include a 52-megawatt plant in Bulacan, a 116-MW facility at the Subic Bay Freeport Zone, and a 21-MW plant in La Union.
“The divestment will help ACEN achieve its goal of 100-percent renewable energy generation by end-2025,” the company said earlier.
ACEN is also aggressive in advocating for the potential use of transition credits for the early retirement of coal plants.
Transition credits are a financing approach used to fund the phaseout of coal plant assets while pursuing replacement facilities that use renewable energy.
