Ayala Corp ventures into power business

MANILA, Philippines - Highly-diversified conglomerate Ayala Corp. has entered the power business as it acquired a 50-percent stake in a company that operates a 33-megawatt (MW) wind farm in northern Ilocos Norte province.

In a disclosure to the Philippine Stock Exchange, Ayala said through its wholly-owned unit Michigan Power Inc., it has acquired half of NorthWind Power Development Corp., which owns and operates Southeast Asia’s first commercial wind farm with 20 wind turbines.

NorthWind owns and operates power facilities and sells electricity to utilities and private entities. It offers an alternative to utility operators in addressing the increasing cost and demand for electricity. The wind farm is located in Bangui Bay, Ilocos Norte.

Phase I of the Balangui project consists of 15 wind turbines, each capable of producing electricity up to a maximum capacity of 1.65 MW, for a total of 24.75 MW. Phase II of the project is yet to be completed and is expected to add five more wind turbines with the same capacity. This will bring the total capacity to 33 MW.

 The acquisition came on the heels of a joint venture struck with Japan’s Mitsubishi Corp. on solar power.

 “We believe there are opportunities to make early stage investments in the renewable energy space, which may have the potential to grow over time given the need to develop alternative sources of energy. In addition to our wind and solar initiatives, we are also developing platforms for hydro-electric power,” said Fernando Zobel de Ayala, Ayala Corp. president and chief operating officer.

 Together with the Pangilinan-led Metro Pacific Investments Corp. and Lopez-owned First Gen Corp., the Ayalas participated but lost in the bidding for the Angat hydroelectric power plant last year.

 Sitting on a gaping budget deficit, the government is relying on mainly the private sector to invest in new generation capacities, with supply expected to hit critical levels next year.