The Ayala group’s power generation unit AC Energy has entered into a deal on the transfer of its entire interest in a 552-megawatt, coal-fired plant in Lanao del Norte to its partner, Power Partners Ltd. Co.
Ayala Corp. said in regulatory filing that the transaction would involve all of AC Energy’s share in GNPower Kauswagan (GNPK) and that the price was still being determined.
AC Energy holds an 85-percent economic stake in the GNPK project, which involves three generators with a capacity of 138 MW each.
The GNPK facility is expected to be fully in commercial operation within this year.
“The transfer will be implemented in tranches, with the final transfer price to be agreed upon by the parties at a later date after taking into account agreed adjustments,” Ayala Corp. said.
“The completion of the transfer is subject to satisfaction of certain conditions precedent, including approvals by the Philippine Competition Commission and the lenders of the GNPK project,” it added.
AC Energy’s divestment from the GNPK is part of its plan to “rebalance” its generation portfolio as it aims to grow its renewable energy assets with a target of achieving at least 5 gigawatts of attributable renewable energy capacity by 2025—representing half of the company’ total portfolio.
Toward this goal, AC Energy last year also entered into an agreement with the Aboitiz group on the selldown of the former’s thermal assets, including interests in GNPower Mariveles and GNPower Dinginin that both involve coal-fired generators.
AC Energy said the deal with Aboitiz would enable the expansion of its domestic and offshore renewable energy businesses with a balanced portfolio in renewable and thermal energy.
As countries around the region begin to adopt more favorable policies toward renewable energy, AC Energy has identified the Philippines, Indonesia and Vietnam as the key markets in its regional expansion strategy.
In 2018 alone, AC Energy partnered with the BIM Group of Vietnam on 300 MW of solar energy and also entered the Australian renewables market through a joint venture with UPC Renewables, which has both solar and wind projects in the pipeline.