AC Energy in talks with investors for another thermal-power asset

By Lenie Lectura – October 23, 2018
from Business Mirror

AC Energy Inc. on Monday said it is in discussions with investors for the sale of another thermal-power asset.

“AC Energy has announced its intention to balance its thermal and renewable portfolio and as such, we engaged potential investors/partners for its thermal platform.  As you know, AboitizPower has partnered with AC Energy for its Bataan power plants.  Other interested investors continue to have discussions with AC Energy for the rest of its thermal portfolio which includes the GNPower Kauswagan plant,” the power arm of conglomerate Ayala Corp. said.

The 4×135-megawatt (MW) coal-fired power plant is located in Kauswagan, Lanao del Norte, in Mindanao. The project proponent is GN Power Kauswagan Ltd. Co.

AC Energy did not provide additional details.

In September AboitizPower sealed a deal with AC Energy for the purchase of a stake in the latter’s thermal business, AA Thermal Inc., valued at $579.2 million.

The transaction involves the acquisition of a 49-percent voting stake and 60-percent economic interest in AA Thermal by AboitizPower.

AA Thermal’s assets initially consisted of AC Energy’s limited partnership interests in GNPower Mariveles Coal Plant Ltd. Co., the owner and operator of an operating 2×316 MW coal plant in Mariveles, Bataan, and GNPower Dinginin Co. Ltd., the developer and owner of a 2×668 MW supercritical coal-plant project in Dinginin, Bataan.

AboitizPower and AC Energy are partners in the GNPower projects. The agreement will increase AboitizPower’s beneficial ownership in the Mariveles project to 78.325 percent, and in the Dinginin project to 70 percent. The Mariveles project has been operating since 2013, while the first unit of the Dinginin project is scheduled to go online in 2019.

AC Energy has around 300 MW of renewable-energy (RE) projects. The company’s thermal portfolio will decrease from around 1,300 MW to around 800 MW after the sale.

Ac Energy’s other thermal asset is the 2×135-MW coal-fired power plant in Calaca, Batangas, under South Luzon Thermal Energy Corp.

By 2025 the company expects to expand its overall energy capacity to more than 5,000 MW, from 1,600 MW currently.