Ayala unit invests in solar power venture

A wholly owned subsidiary of Ayala Corp., AC Energy Holdings Inc., is buying into a solar power farm project in Negros Oriental that is in the race for Feed-in-Tariff (FIT) incentives in the form of guaranteed rate payments and priority dispatch in the energy spot market.

AC Energy signed on Sept. 8, 2015, a subscription and shareholders’ agreement with Bronzeoak Clean Energy Inc., the investment arm of Bronzeoak Philippines Inc., for the development, construction and operation of a solar power farm in Bais City, Negros Oriental. The project will be owned and operated by Monte Solar Energy Inc. (MonteSol), a special purpose vehicle, and will be undertaken in two phases.

The first phase of the project has a capacity of 18 megawatts (MW)  with a total project cost of P1.3 billion. It is targeted for completion by March 2016. The second phase covers the plant expansion. Its capacity can be increased to 40 MW, Ayala Corp. said.

Bronzeoak is also behind the Zabaleta-led, European-funded San Carlos Solar Energy (SaCaSol). The 45-MW SaCaSol project was the first ever renewable energy (R.E.) developer to get incentives under the Feed-in-Tariff (FIT) system.

“We are excited to pursue this opportunity and expand our renewable energy assets in line with our broader objective to create a balanced energy portfolio. This project serves as a good entry platform for our investment in solar power, particularly as technology costs have dramatically improved over the past few years,” AC Energy president and CEO John Eric Francia said.

Bronzeoak president Jose Maria P. Zabaleta said “Montesol is part of Bronzeoak’s development portfolio of 202 MW of solar projects now in operation or under construction, and we couldn’t be any more excited to be welcoming a partner like AC Energy into MonteSol and into the solar power sector.”

“Renewable energy brings reliable and clean power to the countryside to accelerate our nation’s sustainable development,” said Montesol president Xavier P. Zabaleta.

“The investment of AC Energy will accelerate the ongoing rapid development of Negros. Investments like these have been made possible by the strong leadership and project support of the provincial governors of Negros and the local governments of Bais, San Carlos, La Carlota and Manapla,” he said.

The FIT payment to SaCaSol was made on May 5, 2015, “covering the FIT differential for June 2014 and March 2015 billing periods.”