AC Energy Inc., the power arm of Ayala Corp. is expanding its footprint in India with the development of a $36 million solar farm through its joint venture with UPC Solar Asia Pacific.
The 70 Megawatt peak (MWp) Paryapt Solar is expected to start power generation in the first half of 2021, and will supply energy to Gujarat Urja Vikas Nigam Ltd. (GUVNL), an Indian firm engaged in the bulk purchase and sale of electricity.
“UPC-AC Energy Solar won the power supply agreement for the project via a competitive bid at INR 2.55 per kWh, fixed over a 25-year period,”AC Energy said, referring to its joint venture company with UPC Solar Asia Pacific.
Paryapt solar plant will be set in the Amreli District of the State of Gujarat, one of the first states to develop solar generation capacity in India, with its own target to set up 8,000 MW (megawatt) of solar power by 2022.
AC Energy said the project is an immediate follow up to its Sitara solar plant in Rajasthan, its first major investment in India, which it announced in July.
The company earlier said that the estimated $68 million project is expected to commence with power generation in the first quarter of 2021, supplying energy to the Solar Energy Corp. of India (SECI).
The 140-MW Sitara solar plant will also be developed by UPC-AC Energy Solar.
“India has emerged as a country with one of the biggest renewable energy expansion programs, with support from the government and investors driving the growth,”AC Energy said.
“It has set for itself an ambitious target of 175 Gigawatt (GW) renewables capacity by 2022 through 100 GW from solar, 60 GW from wind, 10 GW from bio-power, and five GW from hydro power,”it added.
The partnership between AC Energy and UPC Renewables started in 2013 with North Luzon Renewables, an 81 MW wind farm project in Pagudpud, Ilocos Norte.
In January 2017, the two groups invested in PT UPC Sidrap Bayu Energi, developer of a 75 MW wind farm in South Sulawesi, Indonesia.
Most recently, the companies expanded their partnership with the development of two wind projects, Lac Hoa and Hoa Dong, in the Soc Trang province of southern Vietnam.
The project, with an aggregate capacity of 60 MW, features the tallest towers in Vietnam.
AC Energy has committed to scale up its renewable energy expansion in the region. It earlier identified the Philippines, Indonesia, Vietnam, Australia, India and Myanmar as its key target markets.
The company is targeting to become the largest listed renewables platform in Southeast Asia, with the goal of reaching 5000 MW of renewables capacity by 2025.