ACE Endevor Inc., a subsidiary of AC Energy Philippines Inc. of the Ayala group, has inked a deal with a subsidiary firm of Marubeni Corporation of Japan for its greenfield 150-megawatt diesel-fired power facility in Pililla, Rizal.
The Japanese firm has used Axia Power Holdings Corporation in the joint venture pact it sealed with the Ayala company for that power generating facility.
“Under the agreement, Axia will acquire 50-percent of the shares and 50-percent of the economic rights in the company’s subsidiary Ingrid Power Holdings Inc.,” AC Energy has stipulated in its disclosure to the Philippine Stock Exchange.
Ingrid Power is the corporate vehicle for the Pililla diesel plant project that is targeted to be on commercial stream by first quarter of next year.
In AC Energy’s case, it will hold the balance of the 50-percent shares and 45-percent economic rights,
with Endevor having 5.0-percent of the economic rights in the Ingrid power project.
The JV deal concluded by the two firms will still be subject to the approval of the Philippine Competition Commission (PCC), according to the Ayala energy company.
As designed, the Pililla plant “will supply peaking and reserve power to the Luzon grid,” as the industry is already seeing tight supply conditions straining the country’s main power grid especially at the time when the coronavirus pandemic wanes.
As of January this year, AC Energy already infused P570 million into the Ingrid power facility; which is more than one-third of the project’s indicative cost of P1.5 billion.
Based on the project’s design, the facility will have fast start, high speed and quick response capability – and this will make it ideal for a peaking plant or the facility that could be dispatched by the grid operator when there is sudden surge in system demand.
The project developer’s plan is to also offer the generated electricity from the plant for contingency or spinning reserve; or for the regulating reserve requirement of system operator National Grid
Corporation of the Philippines.
Probable shortfall in power system reserves had been anticipated this year, but because of the lingering pandemic, that scenario in the country’s power supply-demand outlook had been avoided.