Aboitiz Power Corp. (AboitizPower) is expanding its renewable energy pipeline after setting aside $8.55 million, or about P505 million, to acquire full ownership of Ubay Solar Corp., strengthening its clean energy portfolio ahead of the project’s planned rollout.

In a stock exchange disclosure on Monday, AboitizPower said its wholly-owned subsidiary, Aboitiz Renewables Inc. (ARI), exercised its call option to acquire 100 percent of the shares of Ubay Solar Corp. from Ignis Philippines Development Inc.

Strategic goal

“Through ARI, AboitizPower is continuously growing its renewable energy portfolio. This acquisition accelerates AboitizPower’s strategic goal to increase its clean energy capacity and solidify its market position as a leader committed to supporting the Philippines’ sustainable energy transition,” the company said.

The deal covers all outstanding shares of Ubay Solar Corp., including common, preferred, and redeemable preferred shares, representing full equity ownership. Payment for the acquisition will be made on a milestone basis.

AboitizPower said the transaction was completed through a Deed of Assignment of Shares of Stock signed on 12 December, with the peso equivalent based on prevailing exchange rates.

Full control

With the acquisition, AboitizPower gains full control of a greenfield solar power project located in Ubay, Bohol.

The project is expected to reach financial close next year and begin commercial operations in 2027.

The ARI board of directors approved the transaction in April 2024.

In September, the Energy Regulatory Commission approved Ubay Solar’s application to develop, own, and operate dedicated point-to-point transmission facilities to connect its 137.48-megawatt Ubay Solar Power Plant to the Ubay 138-kilovolt Substation, including a request for provisional authority.

AboitizPower operates a nationwide portfolio of renewable and thermal power assets and is pursuing a major expansion of its clean energy capacity by 2030 through ARI.