Ayala Group’s power generation unit, AC Energy, is gearing up to turnaround and transform its newly acquired unit, PHINMA Energy
“We are now in the process of combining the assets and capabilities of AC Energy and PHINMA Energy to form a stronger and more agile energy platform,” said president and CEO John Eric T. Francia at the company’s recent annual stockholders’ meeting held in Makati City.
Foremost on the agenda is the renaming of PHINMA Energy to AC Energy Philippines. “Our vision for AC Energy Philippines is to be the leader in renewable energy in the country. Our goal is to reach 2,000 MW of renewables by 2025,” he added.
AC Energy Philippines aims to return to a positive bottom line immediately by 2020 as well as doubling its capital and generation capacity and increasing thermal availability by over 20 percentage points.
Over the next few years, the company is planning to further increase its capital and to invest in strategic assets. It will consolidate key operating and developmental assets such as the South Luzon Thermal Energy Corp. (SLTEC) and its renewable energy pipeline. “Consolidating the ownership of SLTEC will enable the company to withstand market volatilities and compete for the long term,” explained Francia.
SLTEC is a joint venture of AC Energy, PHINMA Energy and Marubeni Corporation’s Axia Power Holdings Philippines Corporation.
Francia noted that AC Energy is seeing a lot of significant opportunities in the power sector, with the electricity demand continuing to exhibit strong growth on the back of a robust economy. Renewable energy also continues to improve in terms of cost and efficiency, and this is backed by the government through the EPIRA and RE Laws.
“Our vision for AC Energy Philippines is to be the leader in Renewable Energy in the Country.” – Eric Francia (President & CEO, AC Energy)
“With the government’s target of renewables reaching 35 percent of energy output by 2030, the country would need to build over 15 GW of renewables in the next decade. We will make significant investments in this space,” said Francia, adding that renewables would have to be complemented by other low-carbon technologies such as gas-fired generation and energy storage, which the company will be exploring.
Subsidiary PHINMA Petroleum and Geothermal, with its interest in oil and gas exploration service contracts off the West Palawan coast, will also be renamed ACE Enexor Inc. “We plan to further develop the gas field prospect in line with the country’s effort to find the next indigenous source after Malampaya,” said Francia.