Ayala readies $2.5B worth of power projects

2:27 am | Friday, August 31st, 2012

Conglomerate Ayala Corp. is embarking on $2.5 billion worth of power projects to build a portfolio of about 1,000 megawatts over the next five years as it eyes to make energy one of its core businesses over the long term.

Eric T. Francia, managing director and group head for corporate strategy and development of Ayala, explained that of this amount, the company expected equity investment to reach $500 million.

Ayala, according to Francia, was looking at a “balanced portfolio” of power generation coming from greenfield projects fueled by traditional fossil fuels like coal and renewable energy. Also being considered are possible asset acquisitions.

The goal is to at least start the construction of the proposed power plants over the next five years as it would be impossible to have all the 1,000 MW coming on stream within that period.

Francia added that Ayala has been entering into partnerships with companies that have the expertise in the energy industry. In 2010, Ayala formed a joint venture with Mitsubishi Corp. of Japan to develop solar power projects in the Philippines. Last year, Ayala’s power generation arm, Michigan Power Inc., acquired a 50-percent stake in NorthWind Power Development Corp., which owns and operates Southeast Asia’s first commercial wind facility, the 33-MW wind farm in Bangui, Ilocos Norte.

Through a vehicle company called South Luzon Thermal Energy Corp., Ayala-led AC Energy Holdings and Trans-Asia Oil are constructing a P12-billion, 135-MW coal-fired facility in Batangas. The second phase will see the construction of another 135-MW coal-fed unit within the same compound.

For its mini-hydropower ventures, Ayala has partnered with Sta. Clara Power Corp., which holds several service contracts for hydropower projects. The partnership will involve at least 100 MW worth of capacity.

“Our aspiration is to make [power] one of our major legs within the five- to 10-year horizon, contributing to equity earnings as one of our core businesses. As you know, our core businesses—the big four—contribute more than P1 billion in equity earnings to Ayala. So our aspiration is that over a five- to 10-year period, hopefully, our equity earnings from these projects will be in that order of magnitude,” Francia said.

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Tags: ayala corp. , Energy , Investments , Philippines , power projects , renewable energy

H_A_B_A_G_A_T

Thanks GOD! :)

keep the investment in power generation going!

susunod jan ang mga manufatucring investmet pag bumaba na ang price ng electricity.
at dadami na ang trabaho sa masa :)

then sana in a comming year, exploration sa bernham rise naman, para gasolina naman bumaba :)

naway manumbalik ang pinas sa dating sigla, at mabawasan na mga iskwater.
scusi777

The Philippines should build multi-pupose dams (hydro-electric power, irrigation, potable water and flood control).

1. Baguio -
I could be wrong but as far as I can remember, we can build dams in Baguio – the power generation will be in the Kennon Road and the upstream impoundment will be the area that is contantly under water when heavy rain comes.

2. San Ildefonso, Bulacan -
The hydro-electric power plant can be built in the area covering the Mag-asawang Sapa located between Malipampang and Matimbubong. The upper stream impoundment could be in the Akle vicinity that will capture the on-rushing water from the denuded mountain.

3. Marikina Dam -
I remember there was a discussion in my class about the feasibility of erecting an earth dam in Marikina. It will be massive but would be more stable during the occurence of tremors. That was in the 70′s. The upper stream impoundment could be in Rodrigues (Binangonan). These dams would complement each other for flood-control and supply of water.

H_A_B_A_G_A_T

Ang baguio meron dam jan.
And somewhere in quezon may dam na under construction, last year ko pa umpisa narinig, comming as 1st hand information sa office mate ko na korean, nung nasa korean firm pako.

lahat naman yan kung feasible lalagyan yan, investment din yan on sa part ng negosyante. pero syempre it goes to feasibilty studies kung enough ba yan para kumita mga investor. syempre hindi kawang gawa gagawin ng investor jan.

Wadav

And yes gas power station is a little bit clean. BUT, we will be stucked with GE Corporation FOREVER! Most of the gas turbines in the world are produced by GE. Every few years, gas turbines are overhauled and will be needing very COSTLY replacement parts. and that is a problem because we will be relying on imported parts again! If we go for SOLAR power, replacement parts can be found EVERYWHERE IN THE WORLD. and it will be CHEAPER!

H_A_B_A_G_A_T

state ur profession para maniwala kami sayo.
madami magsabi ng mga ganyan.

Wadav

Now is the best time to go for RENEWABLE ENERGY! Running a coal power station will be greatly impacting our water resources. US is already facing this problem! In a recent US study just released Apr 2012 (BurningOurRivers.pdf), for every kwh produced from a coal power station, you need about 2 liters of water! Can you imagine how much water will be drawn by a 300 MW coal power station??
kulittwit

GO GO GO!

GOD BLESS THE PHILIPPINES
scusi777

Is there any plan to add another gas-fired power plant? Malampaya can supply the natural gas. And Benham Rise is also a prospect for natural gas resource.

Even if Malampaya is still under the BOT, the govt can re-negotiate the cost of natural gas for domestic use including power generation.

Not unless there is a reliable power supply and the cost is lower than other Asian countries, we cannot expect companies re-locating to or even staying put in the country. Filipinos should have cheap cooking gas becuase the source is local.

H_A_B_A_G_A_T

yes brod there is. last month kakatapos lang ng fron end engineering ng expansion phase ng malampaya : ). ibig sabihin going to detailed phase and construction na sila in 1 year or so, and that gas will be supplied to batangas for power generation :).
And take note , majority ng manpower ng gumawa ng Front end engineering ng malampaya extension eh mga pinoy mismo jan sa pinas :).

feel free to search naalng sa google, Fluor Manila (eto ung nag FEED ng malampaya extension)
google mo nalang din ugn malampaya :)

Handiong

I’m glad that investments are flowing into the power industry. This should make the price of power more competitive vis-a-vis our neighbors so that foreign investors will opt to do business in the Philippines rather than in other countries.

H_A_B_A_G_A_T

tama ka brod. pag mababa na ang cost of electricity eh, susunod na ang investment sa mga manufacturing :).
madami manufacturing ang gusto mag tayo sa pinas, lalo na mga taga Japan : )

medyo hampered sa aming mga OFW dail tataas ang peso at bababa ang palitan ng dollar/euro, pero ok lang basta umusad ang pinas :)

http://karmaeconomics.blogspot.com/ lavista4u

Yeah…good move for the corporate profit..nothing cheerful for ordinary Filipinos..who would pay even more for power now

http://pulse.yahoo.com/_QFH7Z2HJ35MLP5KFSJB6S76SAU Francis

so, how would you like it, you watch tv and turn on the aircon and not pay for the electric bill? Or maybe you like cheap power even when oil prices are high therefore government subsidizes your bill? So when govt subsidizes it, where else will it get the money except from taxpayers money? which means that I will end up paying part of your luxuries?

Now you dont want people to build plants. Pag-brownout, reklamo ka na naman? wake up and stop dreaming. go to work

http://karmaeconomics.blogspot.com/ lavista4u

You are right…Thanks for opening my eyes..i was mistaken….

http://www.facebook.com/profile.php?id=1232111953 Juanito Memoracion Jr.

Excellent! This is what I’m trying to explain in my blogs and posts that this infra structure investment projects must be started to materialize so it will create a domino effect to boom our industry and economy and the best part is creating more jobs to our countrymen thereby reducing our unemployment problem. When? NOW! HURRY! NOW!

Ayala readies $2.5B worth of power projects

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