Recently, the AC Energy group has acquired a 50 percent stake in a 50-megawatt (MW) solar farm in Pampanga being developed by Citicore Solar Energy Corp. (CSEC). The company disclosed that along with its subsidiary ACE Endevor Inc., it has signed a shareholders’ agreement with CSEC and Greencore Power Solutions 3 Inc. to develop, construct and operate a photovoltaic (PV) solar power plant in Arayat and Mexico, Pampanga.
Scheduled to become operational in November 2021, this solar plant will have an installed nominal capacity of 50-megawatt AC power (MWac). “The company will have the opportunity to earn stable dividend income from the operations of the project,” ACEN said.
Under the deal, CSEC will have 50 percent of the shares in Greencore, the special purpose vehicle of the solar project, while ACEN and Endevor will hold 45 percent and five percent, respectively.
The board of Greencore will consist of five members with two representatives each from ACEN and CSEC. The fifth director will be nominated jointly by ACEN and CSEC.
CSEC will undertake the provision of engineering, procurement and construction (EPC) services through its affiliated entities, including but not limited to, Megawide Construction Corp. or any of Megawide’s designated subsidiaries or affiliates for the project.
“This joint venture supports the company’s strategic objective to be the growth platform of the AC Energy Group in the country. The company will have the opportunity to develop a greenfield stand-alone solar farm, which will provide daytime power to the Luzon grid, in partnership with CSEC,” ACEN said.
Also, ACEN will be providing a term loan facility of up to P2.765 billion to Greencore to finance the construction of the solar farm. The loan will finance the design, engineering, financing, construction, procurement and supply, manufacturing, commissioning, start-up, testing, delivery, ownership, operation and maintenance of the said plant.
ACEN also signed an agreement with Greencore to subscribe to 2.25 million common shares with a par value of P1 per share, or P2.25 million, to be issued out of the unissued authorized capital stock of Greencore.The said amount will be used by Greencore to partially fund the development and construction of the solar project.
Earlier Citicore had said that the solar farm had a project cost of P3.3 billion. This project will bring Citicore’s total capacity to 238 MW with a total of eight operating solar plants located in various provinces in the Philippines.
Lately, ACEN took over Solar Philippines Central Luzon Corp. (SPCLC) by acquiring a 97.6 percent interest from Solar Philippines Power Project Holdings Inc. The company is one of the fastest growing energy companies with over $1 billion of invested and committed equity in renewable and thermal energy in the Philippines and around the region. This year, it is eyeing to double its Philippine capacity from 450 MW to 1,000 MW. The company aims to exceed five gigawatts of attributable capacity and generate at least 50 percent of energy from renewables by 2025.