AC Energy invests P570 million in 300 MW diesel power plant in Rizal

MANILA, Philippines — AC Energy Philippines Inc. (ACEP) has invested P570 million in a 300-megawatt (MW) diesel power plant in Rizal.

In a disclosure to the Philippine Stock Exchange yesterday, ACEP said it signed a subscription agreement with Ingrid Power Holdings Inc.

Under the agreement, ACEP subscribed to 50,000 Ingrid common shares worth P4.9 million and P565.1 million worth of redeemable preferred shares.

“Issuance of the shares is subject to the necessary regulatory approvals for increase of Ingrid’s authorized capital stock and creation of new shares,” ACEP said.

The transaction is part of the consolidation of parent firm AC Energy Inc.’s power assets——both thermal and renewable—under one roof.

Formerly AC Energy DevCo Inc., Ingrid is developing a 300-MW diesel power plant in Pililia, Rizal, of which the first 150-MW will start construction in the first quarter of 2020.

In October 2017, the company was cleared to conduct a grid impact study on a 300-MW diesel modular genarator set power plant in Pililia, Rizal. It then underwent pre-development process for the diesel power plant the following year.

AC Energy DevCo is affiliated with Ayala Energy Holdings Inc., which took over Bronzeoak Philippines Inc. It owns  solar projects in Negros — San Carlos Solar Energy, Negros Island Solar Energy, and Monte Solar Energy.

John Francia, AC Energy president, earlier said the peaking plant would be able to complement the intermittent supply being provided by renewable energy projects once RE policies, such as the Renewable Portfolio Standards (RPS), are in place.

RPS, a provision of the Renewable Energy Act of 2008, mandates power industry players to produce and source a certain percentage of electricity from RE sources such as biomass, waste-to-energy technology, wind energy, solar energy, run-of-river hydroelectric power systems, impounding hydroelectric power systems, ocean energy, and geothermal energy.