AC Energy Holdings Inc., the power arm of Ayala Corp., is beefing up its renewable-energy (RE) portfolio with newly signed deals with UPC Renewables Indonesia Ltd.
The power firm on Wednesday reported it signed investment agreements with UPC Renewables for the development, construction and operation of a wind- farm project in Sidrap, South Sulawesi, Indonesia, that will cost $150 million (P7.44 billion).
The project will be developed through PT UPC Sidrap Bayu Energi, a special-purpose company based in Indonesia.
The Sidrap wind project, with generating capacity of 75 megawatts (MW), is targeted for completion by the end of 2017, and will be the first utility-scale wind-farm project in Indonesia once completed.
It is the first greenfield offshore investment of AC Energy Holdings Inc., through its affiliate, AC Energy International Holdings Pte. Ltd., a Singapore private-limited company.
The Sidrap project 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 AC Energy preparing to build P7.44-billion wind farm in Indonesia in Italy, the US, Canada, China and the Philippines.
UPC Renewables and AC Energy Holdings Inc. are among the owners of North Luzon Renewable Energy Corp., the owner and operator of the 81-MW Caparispisan wind-farm project in Pagudpud, Ilocos Norte.