Philippines: Ayala power unit to focus on wind, solar

Philippines: Ayala power unit to focus on wind, solar

AC Energy Holdings Inc. of Ayala Corp. has signed definitive documents to
sell all of its ownership in hydro power firms QuadRiver Energy Corp.,
Philnew Hydro Power Corp. and PhilnewRiver Corp. to Sta. Clara Group Inc. to
focus instead on wind and solar.

"Prior to this sale, AC Energy held 70 percent of the outstanding capital
stock of each of the hydro companies, with Sta. Clara Power Corp. being the
owner of the remaining 30 percent," Ayala Corp. said in a disclosure to the
Philippine Stock Exchange.

AC Energy did not disclose the amount of the transaction.

Sta Clara is an independent power producer specializing in run-of-the-river
hydroelectric plants.

The company said the hydro companies are grantees of several hydropower
service contracts from the Department of Energy.

Llast month, AC Energy, as part of an Indonesian consortium and a Philippine
consortium, signed share sale and purchase agreements with Chevron Global
Energy Inc., Union Oil Company of California and their relevant affiliates
for the purchase of Chevron's geothermal operations in Indonesia and the
Philippines.

The Indonesia consortium consists of AC Energy with 19.8 percent economic
stake, Star Energy Group Holdings Pte. Ltd., Star Energy Geothermal Pte.
Ltd. and Electricity Generating Public Company Ltd.

The acquisition will be made through their joint venture company, Star
Energy Geothermal (Salak-Darajat) B.V.

The Philippine consortium consists of AC Energy and Star Energy Group
Holdings Pte. Ltd. The acquisition will be made through their joint venture
company, ACEHI-STAR Holdings, Inc.

AC Energy said the transaction, particularly the acquisition of the local
asset, is subject to obtaining certain consents and approvals including the
approval of the Philippine Competition Commission.

"This acquisition is a major milestone for AC Energy as this scales up our
renewable energy platform and establishes our presence in Indonesia. This is
a significant step towards attaining our goal of reaching 2,000 MW
(megawatts) by 2020," said John Eric Francia, AC Energy president and chief
executive officer.

In Indonesia, Chevron subsidiaries operate the Darajat and Salak geothermal
fields in West Java, with a combined capacity of 235 megawatt (MW)
equivalent of steam and 402 MW of electricity.

In the Philippines, Chevron subsidiaries have a 40 percent equity interest
in the Philippine Geothermal Production Company Inc. which operates the Tiwi
and Mak-Ban geothermal field in Southern Luzon and supplies steam to power
plants with a combined name plate capacity of around 700 MW.

Francia earlier said AC Energy expects to break ground for a wind project
in Indonesia with a capacity of less than 100 MW wherein AC Energy will have
a 75 percent interest with the rest shared by one international and one
local energy player.

Among the power projects where the firm is currently involved in are coal
plants 604 MW GN Power Mariveles and 668 MW GN Power Dinginin in Bataan;
244 MW South Luzon Thermal Energy in Batangas and 552 MW GN Power Kausawagan
in Lanao del Norte; the 81 MW North Luzon Renewables and 52 MW Bangui wind
farm in Ilocos Norte and the 18 MW Montesol solar farm in Bais, Negros
Oriental.

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Link to Original Article:
http://www.malaya.com.ph/business-news/business/ayala-power-unit-focus-wind-
solar

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com