THE power unit of conglomerate Ayala Corp. is investing $20 million to partly finance the development, construction and operations of renewable-energy (RE) power projects in the Asia-Pacific (AsPac) region, with a goal of building a portfolio of over 1 gigawatt in the next few years.
AC Energy, through AC Renewables International Pte. Ltd., will undertake these power projects together with UPC Renewables, through UPC Solar Asia Pacific Ltd.
They formed a 50-50 joint-venture company known as UPC-AC Energy Solar.
“AC Energy is investing $20 million via a development loan to finance the development of this pipeline and expects to provide all the construction equity required for these projects,” AC Energy said.
In particular, the initial focus on building UPC-AC Energy Solar’s power portfolio is set in India, South Korea and Taiwan.
The new investment will enable the group to accelerate development of projects in the region, said UPC Renewables Chairman Brian Caffyn. “As partnerships and growth opportunities arise, we are always looking at ways to significantly scale up our renewable-energy portfolio. AC Energy has always been focused on large-scale projects and is managed by a high-quality management team. We are grateful for their continuous support to the UPC group,” said Caffyn.
Patrice Clausse, AC Energy chief operating advisor and AC Renewables International director, said the company is on its way to achieve a balanced energy mix. “AC Energy is very excited to invest in another partnership with UPC Renewables. Our move to enter into a large and bankable solar market like India is consistent with AC Energy’s goal to exceed 5,000 megawatts by 2025, with at least 50 percent to be sourced from renewables,” said Clausse.
Pranab Kumar Sarmah, CEO of UPC-AC Energy Solar and co-founder of UPC Solar Asia Pacific, lauded the revitalized partnership. “We are pleased to have AC Energy as our joint-venture partner at a crucial point when UPC Solar is ready to accelerate construction activities of its pipelines and continue its humble journey to reduce carbon footprint. We aim to make this partnership a competitive regional solar project development and asset management platform.”
UPC Renewables’ and AC Energy’s partnership started in 2013 for the development, construction, and operations of North Luzon Renewables, an 81-MW wind farm project in Pagudpud, Ilocos Norte, Philippines. In January 2017, the two groups invested in PT UPC Sidrap Bayu Energi, developer of a 75-MW wind farm in South Sulawesi, Indonesia.