AC Energy Corp. (Acen) is infusing about P3 billion into a subsidiary to partially fund a 160-megawatt wind farm in Pagudpud, Ilocos Norte, construction of which has just started.
Tagged at P11.4 billion, the project dubbed Balaoi and Caunayan wind farm is a joint venture with longtime partner UPC Renewables.
To make the fund available, Acen is subscribing—pending regulatory approvals—to 3 million common shares of Pagudpud Wind Power Corp. (PWPC) as well as 27.3 million Class A redeemable preferred shares in this subsidiary.
The total of about 30 million shares is priced at P100 apiece.
In turn, PWPC will use proceeds of the subscription to subscribe to shares in Bayog Wind Power Corp. (BWPC), which is developing the Balaoi and Caunayan project.
BWPC intends to use the infusion from PWPC to fund initial works related to the start of the construction of the project.
Earlier, Acen said the project would bring it closer to its goal of building a 5,000-MW portfolio of renewable energy assets, and also of becoming the largest listed renewables platform in Southeast Asia.
When Baloi and Caunayan is completed in the fourth quarter of 2022, Acen will have a total of 2,000 MW in renewables assets. The project is set to start commercial operations in 2023.
Renewable assets portfolio
There are two other wind farms in Acen’s fleet that are also in Ilocos Norte—the 81-MW North Luzon Renewables facility in Pagudpud and the 54-MW NorthWind facility in Bangui.
The project will be the third wind development of AC Energy in Ilocos Norte, along with the NorthWind wind farm in Bangui and the North Luzon Renewables wind farm in Pagudpud.
Jose Maria P. Zabaleta, chief development officer of AC Energy, said this project will contribute to the growth of renewables in Acen’s portfolio as they scale up their sustainable investments.
”The site of the Balaoi and Caunayan wind farm has one of the best wind resources in the country and its construction marks the culmination of over ten years of development work,” David Sutton, CEO of UPC Renewables Philippines, said in a joint statement. —RONNEL W. DOMINGO