AC Energy buys Negros solar farms

Power firm AC Energy, formerly known as Phinma Energy Corp, acquires controlling interests in Negros-based solar companies generating a combined 125-megawatt of sun power.

In line with its bid to ramp up its renewable energy portfolio, AC Energy Philippines Inc. (ACEPH), formerly Phinma Energy Corp., on Tuesday inked agreements for the purchase of controlling interests in San Carlos Solar Energy Inc. (SACASOL) and Negros Island Solar Power Inc. (ISLASOL).

SACASOL owns and operates a 45-megawatt (MW) solar farm in San Carlos City, Negros Occidental under the feed-in-tariff (FIT) system, while ISLASOL owns and operates an 80 MW solar farm in the same province.

The share purchase agreement was signed between the Ayala-led power firm and the Philippine Investment Alliance for Infrastructure (PINAI) and its investors, Macquarie Infrastructure Holdings (Philippines) Pte. Limited, Langoer Investments Holding B.V.

ACEPH is buying the shares of the PINAI investors for P2.776 billion for SACASOL and P1.1 billion for ISLASOL, subject to adjustments. The deals are subject to approval by the Philippine Competition Commission.

“By acquiring controlling interest in SACASOL, the company will increase its ownership interest in a generating asset that is operating under the FIT system of the Renewable Energy Act,” ACEPH told the stock exchange.

In a separate disclosure, the company said controlling interest in ISLASOL increases its ownership interest “in a generating asset with stable cash flows at a reasonable cost.” The transaction is seen completed on or before 31 March 2020.

Additionally, the buy-outs also support its target to have 2 gigawatts of attributable renewable energy capacity by 2025.

In November, ACEPH parent firm AC Energy announced it is also acquiring the stake of PINAI in North Luzon Renewables Corp., a joint venture between AC Energy, UPC Philippines, Mitsubishi Corp.-affiliate Luzon Wind Energy Holdings and PINAI.

It operates an 81 MW wind farm in Pagudpud, Ilocos Norte.

As of November, AC Energy has a net attributable capacity of over 1,600 MW, with 600 MW coming from renewable sources.