Listed firm AC Energy Corporation (ACEN) of the Ayala group and Filipino-owned CleanTech Global Renewables Inc. are eyeing a joint venture for the commercial development of the proposed 200-megawatt solar farm project in Lal-lo, Cagayan province.
In a disclosure to the Philippine Stock Exchange (PSE), AC Energy said the proposed new partnership had already secured the approval of its board of directors.
The deal is still subject to “agreed conditions precedent – including regulatory approvals” as well as final execution of definitive documentation.
AC Energy said that parties are “currently working out the specific terms of the joint venture.”
As specified, ACEN and Cleantech “intend to co-own Natures Renewable Energy Development Corp.” which shall serve as the special purpose vehicle (SPV) for the targeted solar farm installation.
The Lal-lo solar venture is a project initiated by Cleantech and it will be the Ayala energy firm that will be acquiring equity ownership in that proposed renewable enery or RE facility development.
At this stage, AC Energy reiterated that “the terms of the joint venture are currently being negotiated and finalized – including the manner by which the project will be managed and operated.”
The Ayala firm has blueprinted 5,000 megawatts of RE capacity that it plans to concretize by 2025 in the Philippines as well as in other Asian energy markets and that the Lal-lo solar farm installation will be part of that targeted portfolio buildup.
In Cleantech’s case, it is advancing greenfield solar developments of 22MW capacity in San Ildefonso, Bulacan and 20MW capacity in Santa Barbara, Pangasinan.
Both companies are bent on pursuing RE and clean energy projects to become the government’s formidable partner in the “energy transition pathway” which has the end goal of substantially reducing the country’s carbon emissions.
The Philippines will be integrating massive scale RE capacities on its energy mix and these installations will be underpinned by the propounded Renewable Portfolio Standards (RPS), Green Energy Option Program and net metering, as among the market incentives that will stimulate capital flow in the RE space.