Aboitiz Renewables unit plans P512M facility for solar link

From AB Capital's The Opening Bell: Three Moves

Event

AP filed with ERC to build a P512mn dedicated transmission line linking its 239.56MWdc Luna Solar Power Project + 65MW BESS in Cadiz, Negros Occidental, to the Visayas grid. Construction starts this quarter, with COD targeted 4Q2027, connecting to the 230kV Cadiz Substation (~5km away).

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Dedicated transmission ensures timely commissioning, full dispatch, and revenue recognition for Luna, reducing operational and opportunity-cost risk. The project will support cash flows and earnings, but is not expected to materially impact AP’s results until 2028.

Catalyst

Key near-term triggers include ERC approval, EPC finalization, construction progress, and grid interconnection testing. Upside comes from on-time completion and lower-than-expected capex; risks include permitting delays, cost overruns, or interconnection constraints.

Action

We maintain Outperform on AP with a TP of P54/sh. The development will only be earnings-accretive in 2028, but investors can monitor project milestones for selective accumulation, as successful transmission completion unlocks long-term renewable cash-flow visibility.

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