AC Energy sees ‘good’ growth momentum

By Lenie Lectura – January 22, 2018
from Business Mirror

AC Energy, the power arm of conglomerate Ayala Corp., sees “consistent growth” in its net income in the next three to four years to be driven by the new contribution of its power projects.

“We will see consistent growth over the next three to four years,” AC Energy President John Eric Francia said. “The momentum is pretty good.”

The new projects that will further contribute to the power firm’s growth include its geothermal asset in Indonesia, a wind-farm venture project in South Sulawesi and its coal-power project in Bataan. These are on top of AC Energy’s existing power projects, according to Francia.

For 2017 Francia is optimistic that AC Energy will post a “significant” profit. As of end-September last year, the net income of AC Energy went up by 73 percent to P2 billion.

“We had a very good wind regime last year. Our geothermal investment, which started last April, is contributing already, so that added to our earnings,” Francia said. “Wind projects also contributed, [and] GN Kauswagan is also contributing more this year. Hopefully, our Diningin project 1 and 2 will come on line.”

AC Energy’s conventional power projects include the 668-megawatt (MW) GN Power Dinginin Ltd. Co. coal plant in Bataan, the 604-MW GNPower Mariveles, the 2×135-MW coal-fired power plant in Calaca, Batangas, under South Luzon Thermal Energy Corp. and the 4×135-MW coal-fired power plant in Kauswagan, Lanao del Norte in Mindanao through GN Power Kauswagan Ltd. Co.

AC Energy has a 20-percent stake in the 632-MW GNPower Mariveles Coal Plant Ltd. Co., 50 percent in the 668-MW GNPower Dinginin Ltd. Co., 35 percent in the 244-MW South Luzon Thermal Energy Corp. and 85 percent in the 552-MW GNPower Kauswagan Ltd. Co.

Construction of the first unit of its Dinigin project is under way for commercial operations by 2019. The second unit scheduled for completion by 2020.

Overseas, it has a 19.8-percent stake in the 637-MW geothermal steam and power capacity in Darajat and Salak geothermal fields and a 75-percent stake in the 75-MW wind-farm project in Sidrap.

Its renewable-energy (RE) projects in the country include the 52-MW Northwind Power Development Corp. in Bangui, Ilocos Norte; the 81-MW wind farm in Pagudpud, Ilocos Norte, through its affiliate North Luzon Renewable Energy Corp. and the 18-MW solar plant in Negros Oriental, a joint undertaking with Bronzeoak Clean Energy Inc.

AC Energy targets the development by 2020 of up to 2,000 MW of capacity, of which 1,000 MW is targeted to come from RE.