AC Energy Philippines Inc. of conglomerate Ayala Corp. is taking majority control of North Luzon Renewables Energy Corp., which owns and operates an 81-megawatt wind farm in Pagudpud, Ilocos Norte.
AC Energy, formerly Phinma Energy Corp., said in a disclosure to the Philippine Stock Exchange its executive committee approved the signing of an agreement to buy the stake of Philippine Investment Alliance for Infrastructure (PINAI) in North Luzon Renewables.
“The acquisition is subject to definitive documentation and approval by the Philippine Competition Commission (PCC),” AC Energy Philippines said.
PINAI, a fund composed of Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V. and the Government Service Insurance System (GSIS), effectively has a 31-percent preferred equity ownership and 15-percent common equity ownership in North Luzon Renewables.
North Luzon Renewables is a joint venture between AC Energy Inc. (AC Energy Philippines’ parent firm), UPC Philippines, Luzon Wind Energy Holdings (an affiliate of Mitsubishi Corp.) and PINAI. The wind farm started its commercial operations in November 2014.
AC Energy, prior to the transaction, already owned the single biggest equity of 36 percent in North Luzon Renewables, the owner and operator of the country’s second biggest wind farm. North Luzon Renewables earlier announced plans to to expand the capacity of the Caparispisan wind project to 150 MW.
“The expansion will have to still depend on several factors. One is the pre-development, the permitting including service contract. We’ve already applied and we are still waiting,” AC Energy chief executive officer Eric Francia said earlier.
Francia said his company was preparing the expansion project in time for the implementation of the renewable energy portfolio standards, which require power industry participants to secure a certain percentage of their respective annual energy demand from renewable energy.
AC Energy Philippines is developing 2,000 MW of renewable energy in the country by 2025 that may require total investments of nearly $2 billion.
The 2,000-MW RE target formed part of the 5,000-MW RE portfolio goal of parent AC Energy, officials said in an annual stockholders’ meeting Monday.
The balance of the 3,000-MW RE target at the AC Energy parent level will come from the international market. AC Energy already has an RE presence in Vietnam and Australia. The company also recently bared plans of investing in Myanmar.
“Our vision for AC Energy Philippines is to be the leader in renewable energy in the country. Our goal is to reach 2,000 MW of renewables by 2025,” AC Energy president and chief executive Eric Francia.