AC Energy and Infrastructure Corp. of the Ayala Group and partner UPC Solar Asia Pacific announced Monday they reached financial closing on the 100-megawatt Sitara solar farm in India.
Sitara Solar, located in the desert state of Rajasthan which has the highest irradiation in India, has an estimated project cost of $67 million.
The construction of the solar farm started last year and was expected to start power generation by the first half.
Sitara Solar secured a 20-year loan from US International Development Finance Corp. to finance the project through a 75:25 debt-to-equity scheme.
This is a major milestone for UPC-AC Energy Solar, the joint venture of ACEIC and UPC Solar Asia Pacific, as it targets to achieve more than 1,000 MW (1 gigawatts) of solar energy portfolio across Asia.
UPC-AC Energy Solar won the power supply agreement in March 2019 for the 100-MW solar project via a competitive bid at INR 2.48 per kWh, fixed over a 25-year period.
UPC-AC Energy Solar is a 50-50 joint venture company between ACEIC through AC Renewables International Pte. Ltd. and UPC Renewables.
The Sitara solar project milestone is the latest in AC Energy’s string of initiatives to sustain growth momentum and expand renewable capacity in the Asia Pacific region.
“We are well-positioned to establish a meaningful presence in India and contribute to the country’s renewable energy goals, bringing a total of 450 MW of solar projects under construction and in the pipeline with our partner, UPC Renewables,” Patrice Clausse, chief operating officer of AC Energy International, said in a statement.
“These sustainable developments highlight our commitment to support the country’s aim to source over 60 percent of energy capacity from renewable sources in 10 years,” Clausse said.
ACEIC is a wholly-owned subsidiary of Ayala Corp., one of the largest and most diversified conglomerates in the Philippines.
ACEIC is the holding company for Ayala’s energy and infrastructure businesses and owns majority interest in AC Energy Corp. which aspires to be the largest listed renewables platform in Southeast Asia with a goal of reaching 5,000 MW of renewable capacity by 2025.