Ayala-led AC Energy Holdings Inc. plans to almost double its investments in power projects to nearly P80 billion, as it seeks to expand its presence in the energy sector here and abroad.
AC Energy president and CEO Eric T. Francia said the company had initially committed to spend P40 billion for existing projects with partners.
Another P40 billion may be invested over the next five years in new projects that will double the company’s attributable capacity to 2,000 megawatts by 2020.
AC Energy announced this new energy development goal after breaching its 1,000-MW capacity target this year.
According to Francia, the doubling of its capacity can come from the expansion of existing facilities as well as from new partnerships and acquisitions.
For the next 1,000 MW, AC Energy will be focus more on renewable energy projects.
“The world and the market are headed toward renewable energy not only because of environmental reasons, but the economics (of such ventures) are getting much better,” Francia said Wednesday.
AC Energy has equity in seven thermal, wind, and solar assets, such as the 604-MW GNPower Mariveles and 668- MW GNPower Dinginin in Bataan; 244-MW South Luzon Thermal Energy in Batangas; 552-MW GNPower Kausawagan in Lanao del Norte; 81-MW North Luzon Renewables and 52-MW NorthWind Power in Ilocos Norte, and 18-MW Montesol in Bais, Negros Oriental.
Five of the plants are operational, which collectively deliver about 1,000 MW, while two other plants that are under construction, namely GNPower Kauswagan and GNPower Dinginin, are expected to add another 1,200 MW to the grid between 2018 and 2019.
“Our strategic priority is to get that next milestone (of adding another 1,000 MW of capacity). Our existing platforms have an expansion potential…We will also continue to look for acquisitions and partnerships as what we’ve been doing in the last five years. We will not only look (at opportunities in the local market), but also in the region,” Francia said.
“We will start looking at Indonesia. We have an imminent project there. But we’re interested in looking more broadly in other parts of Southeast Asia. It’s still early but we will also look at Vietnam and Myanmar. These will be the next big growth markets… If the opportunity arises, we will look at it,” he added.
He said AC Energy planned to break ground for a wind power project in Indonesia with partners. This project, which may take off within the year, will have a capacity of less than 100 MW.