Ayala, Mitsubishi tie up for solar power projects

MANILA, Philippines - In line with its diversification into energy ventures, the Ayala conglomerate has tapped Japan’s Mitsubishi Corp. for the development of solar power projects.

In a disclosure to the Philippine Stock Exchange, Ayala Corp. said its subsidiary, Michigan Power Inc. (MPI), has tied up with Mitsubishi’s wholly-owned unit, Diamond Generating Asia Ltd. (DGA), to look into opportunities in solar power business.

“MPI and DGA have agreed to form a joint venture company to be known as PhilNewEnergy Inc., which will undertake the exploration and pre-development of possible solar projects in the Philippines,”  Ayala Corp. said.

It said PhilNewEnergy will be 60 percent owned by MPI and 40 percent by DGA, the power business arm of Japan’s largest general trading company in Southeast Asia.

Ayala said they would invest about P112.5 million into this venture.

“Through this capital infusion, the company aims to enable MPI to explore opportunities in the field of renewable energy and to enter into possible joint ventures for such purpose,” it added.

The Ayala Group had earlier attemp-ted to venture into the power business by forging a partnership with First Pacific and the Lopez Group to bid for power generating assets of the National Power Corp. (Napocor).

Its diversification into the energy sector will further boost its loaded portfolio that include banking, real estate, telecommunications, electronics and water distribution.

Sherisa Nuesa, chief financial officer of Ayala’s electronics unit Integrated Micro-Electronics Inc. earlier said the company has formed a subsidiary in the United States to focus on the development of solar energy technology.

“The ultimate goal is that once we’re there, once we’re selling to certain customers the prototype for solar panels, they will give the actual manufacturing to us,” Nuesa said.

IMI’s plan to expand into the renewable energy sector is in line with efforts to take advantage of incentives being granted by the government on green power technology and to capitalize on its assets. The company is planning to construct a prototy-ping facility for its solar energy products that would be offered to interested partners for large scale manufacturing.