Ayala set to build Indonesia wind farm
Conglomerate Ayala Corp. said Wednesday wholly-owned subsidiary AC Energy Holdings Inc. signed investment agreements with UPC Renewables Indonesia Ltd. for the development of a 75-megawatt wind farm in Sidrap, South Sulawesi, Indonesia.
Ayala said in a disclosure to the stock exchange the project would be developed through PT UPC Sidrap Bayu Energi, a special purpose company based in Indonesia.
The Sidrap project is targeted for completion by the end of 2017 and will be the first utility-scale wind farm project in Indonesia once completed.
It will also be the first greenfield offshore investment of AC Energy Holdings Inc. through affiliate AC Energy International Holdings Pte. Ltd., a Singapore private limited company.
The Sidrap project will cost $150 million, which will be funded through equity and project financing to be provided by the Overseas Private Investment Corp., the US government’s development finance institution and PT Bank Sumitomo Mitsui Indonesia, the Indonesian subsidiary of the Sumitomo Mitsui Banking Corp. of Japan.
UPC Renewables is a leading global energy player that develops, finances, constructs, owns and operates a portfolio of wind power generation assets.
The company and its proponents have successfully developed and operated renewable energy projects in Italy, the US, Canada, China and the Philippines.
UPC Renewables and AC Energy are two of the owners of North Luzon Renewable Energy Corp., the owner and operator of the 81-MW Caparispisan wind farm project in Pagudpud, Ilocos Norte.
AC Energy president John Eric Francia said last year the company would invest close to P80 billion to bring its capacity to 2,000 MW in the next five years.
Francia said 60 percent or bulk of the additional 1,000 MW capacity in the next five years would come from renewable energy investments.
“The renewable energy revolution is upon us and we are gearing up the organization for this new reality. We will also harness synergies across the Ayala group to achieve this goal” said Francia.
“We expect renewable energy to be more competitive over the next five years, and this will be good from a sustainability, diversification and resiliency standpoint,” he said.