AC Energy Solar, a subsidiary of Ayala-led ACEN Corporation, and its foreign partner UPC Renewables will be constructing the proposed 420-megawatt peak (or 320MWac) Masaya solar farm project in Khandwa district in the state of Madhya Pradesh, India that will command an investment of $220 million.

According to ACEN, the solar installation would be able to generate 691 gigawatt-hours of electricity and will also be providing at least 500 jobs. Plus, the carbon dioxide (CO2) emissions avoidance that the facility could yield will top 635,720 metric tons annually.

This latest batch of greenfield project of the UPC-AC Energy Solar joint venture (JV) will ramp up their capacity buildup to 630MW MWp across India – that is, once the new solar plant installation will reach commercial operations.

“Once completed, the Masaya solar farm will be UPC-AC Energy Solar’s third and largest solar project in India to date,” ACEN stressed.

The Ayala energy firm indicated they are currently “in the process of securing a 20-year loan from the State Bank of India to fund the project with an estimated project cost of US$220 million under a 75:25 debt-to-equity financing scheme.”

For the power supply agreement of the solar plant’s capacity, this is already committed for 25-year offtake arrangement with Solar Energy Corporation of India at a fixed rate of 2.71 Indian rupee per kilowatt hour (kWh) or an equivalent of P1.84 per kWh.

Patrice Clausse, head of ACEN’s international group said, “the success of our maiden projects, both reaching operational status in second quarter of 2021 despite the tumultuous COVID-19 crisis, bodes well for the 420MWp Masaya solar project.”

He qualified “though the pandemic continues to present challenges, we are confident that we will complete the construction of this solar development safely and at the earliest possible time, to contribute even more meaningfully to India’s renewable energy goals.”

Additionally, Pranab Kumar Sarmah, chief executive officer of UPC-AC Energy Solar and co-founder of UPC Solar Asia Pacific, asserted that the Masaya solar project “will stand the test of both time and budget in this challenging COVID scenario.”

And for being one of the world’s largest consumers of energy and producers of renewable energy, he emphasized that “this landmark development will be a significant addition to the country’s renewables capacity,” stressing further that their company understands India’s “urgency to increase its production of renewables to help meet the demand and support the country’s progress.”

The Masaya solar farm development in India is part of ACEN’s string of investment initiatives to expand its renewables footprint in the Asian region and for it to concretize its goal of leading the charge in the renewables revolution.