ACEN Corp. is doubling down on its renewable energy push, pouring nearly P1.15 billion into a wholly owned subsidiary behind a major solar development in Zambales.

The fresh capital will bankroll the construction of the Palauig Solar 2 Project, a 300-megawatt-peak (MWp) solar farm that adds another sizable chunk to the Ayala-led firm’s growing clean energy portfolio.

Subsidiary agreement with Giga Ace 8

 In a disclosure on Thursday, ACEN said it signed a subscription agreement with its subsidiary, Giga Ace 8 Inc., to acquire additional shares valued at P1.147 billion.

The company said the funds will be directed toward building the Palauig Solar 2 facility, which is designed to deliver 300.011 MWp and 237 MW alternating current (AC).

“The Subscription Price shall be used to finance the construction of Giga Ace 8’s 300.011 MWp/237 MW AC Palauig Solar 2 Project,” ACEN said.

Under the deal, ACEN subscribed to 3.44 million common shares, 30.98 million Redeemable Preferred Shares A, and 8.03 million Redeemable Preferred Shares C from Giga Ace 8’s unissued capital stock.

Transaction to be funded in cash

The entire transaction will be funded in cash, marking another investment by ACEN into one of its wholly owned vehicles dedicated to renewable energy development.

The investment represents 6.67 percent of Giga Ace 8’s total outstanding shares covered by the transaction. Giga Ace 8 functions as ACEN’s special-purpose vehicle for developing and constructing renewable energy projects in the Philippines.

Operating capacity to exceed 8 gigawatts

By the end of the year, the company expects its operating capacity to exceed 8 gigawatts, with about 15 percent coming from solar, wind, and battery projects across the Philippines and overseas.