Ayala Investing $2.5B In Power

In a move that will likely challenge the dominance of existing industry 'big leagues', the energy arm of the Ayala Corporation is lining up $2.5 billion worth of investments in the next five years to put in targeted installed capacity of 1,000 megawatts.

"That (1,000MW) is our benchmark ... 1,000MW will cost around $2.5 billion," Ayala Corporation managing director Eric T. Francia has told reporters on the sidelines of a Renewable Energy Opportunities Forum hosted by the Philippine Stock Exchange (PSE) and CFA Society of the Philippines.

Of the total pipelined capital outlay for power projects, he noted that $500 million will account for equity that the company and prospective partners are bound to inject within the planning horizon.

Francia has emphasized that the targeted installations could be a combination of greenfield developments (new power plant builds) as well as acquisitions.

"If we can land some interesting acquisitions, we can exceed that. But if not, that would be a tall order if it's all greenfield," he pointed out.

When asked if the Ayala group's scaled up investments in the power industry would be a strategy to position itself among the largest players over the short term, Francia tersely commented that "we're patient."

He thus indicated that "for the conventional technologies, we're looking at a few greenfield opportunities. We're looking across the country. We're looking at possibilities in Visayas and Mindanao - there are two areas where we planned new power plants."

If ever, that will add up to the Ayala group's power portfolio which has been kick-started by their 135-megawatt coal plant in Batangas, a joint venture with Phinma Group's Trans-Asia Oil and Energy Development Corporation.

For renewable energy (RE) alone, the target will be 200 megawatts and the capacity installations may be dominated by hydro, given that solar development prospects could be on the 'fledgling path' because of the lower-than-expected feed-in-tariff (FIT) approved by the industry regulator.

The five-year stretch in Ayala's blueprint will refer to the timeframe when they can get financial closing for the targeted projects.

"That's construction. It's virtually impossible if you do all of it for greenfield. It will just be reaching financial close. If there's going to be some acquisitions, then it could be on stream," Francia has explained.

"20% of power will be RE, roughly $150 million of equity would be on renewable because we have a balanced portfolio between the traditional thermal baseload and renewable technologies," he stressed.

Hydro capacity target will be for 100 to 150 megawatts and it will likely be a joint venture with Santa Clara Power Corporation.

The company's planned 30 to 50MW solar capacity, Francia admitted, will have to be reviewed on account of the FIT that has been anticipated to support investment returns for that technology application.

"It's going to be predominantly hydro. Solar, it really depends. We are building 30 to 50 megawatts but given the feed-in-tariff rate, we're going to revisit if it's going to be feasible. It's really a challenge," he averred.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • ToyotaPH continues it’s strong sales in February
    ToyotaPH continues it’s strong sales in February

    Toyota Motor Philippines (TMP) sustains its strong sales in its February performance. Toyota’s strong performance last month was due to the  high demand of the Vios, with sales of 2,012 units and of course the rest of Toyota’s line up such as the Fortuner, Innova, Wigo, Hilux, Avanza and Corolla Altis. Toyota’s luxury brand, Lexus, recorded 60 units last month. …

  • No apology, but Noy seeks understanding
    No apology, but Noy seeks understanding

    There was no apology, but President Aquino yesterday expressed regret, took “full responsibility” and appealed to the nation for “deepest understanding” for the Jan. 25 Mamasapano raid in which dozens died, including 44 police Special Action Force (SAF) commandos. “To every Filipino who has felt failure or has been hurt because of the events related to this operation, it is with abiding humility that I ask for your deepest understanding,” Aquino said in a speech before the 246 new graduates of …

  • MVP on endorsement: Thanks, I’m no politician
    MVP on endorsement: Thanks, I’m no politician

    Businessman Manuel V. Pangilinan is grateful for Sen. Miriam Defensor-Santiago’s praise and presidential endorsement, but says he is not a politician. In an interview on the sidelines of the launch of the search for The Outstanding Young Men (TOYM) of the Philippines 2015 Wednesday night, Pangilinan dismissed the idea of running for president in the 2016 elections. “I’m not a politician, I’m just an ordinary business person,” he added. Santiago endorsed Pangilinan as a presidential candidate …

  • No Lenten break in operations vs lawless groups – AFP
    No Lenten break in operations vs lawless groups – AFP

    The Armed Forces of the Philippines (AFP) is not suspending its offensive against the Abu Sayyaf, New People’s Army (NPA) and other lawless groups during the Holy Week, an official said yesterday. Lt. Col. Harold Cabunoc, AFP public affairs office chief, said the AFP leadership is leaving it up to area and division commanders whether to raise the alert status in preparation for the Holy Week. Those deployed in areas where there are ongoing law enforcement operations against terrorist groups …

  • Probe harassment vs human rights lawyer, CA orders AFP
    Probe harassment vs human rights lawyer, CA orders AFP

    The Court of Appeals (CA) has ordered the Armed Forces of the Philippines (AFP) to investigate a human rights lawyer’s claim of harassment, including surveillance, by several military officers. In a 22-page decision, the former Special Sixth Division of the appellate court granted the petition for writ of amparo and habeas data of Maria Catherine Dannug-Salucon. The CA ordered the AFP to identify the officers behind the surveillance and file charges against them. The CA ruling said …

  • Noy vows to dismantle bata-bata system in PNP
    Noy vows to dismantle bata-bata system in PNP

    President Aquino vowed yesterday to dismantle the culture of factionalism or the bata-bata system within the Philippine National Police as he continued the search for the next PNP chief. Speaking at the Philippine National Police Academy (PNPA) commencement exercises here, the President said the country needed solidarity among leaders and members of the police force so that the policemen would be effective protectors of Filipinos. “Our challenge to the next chief of our national police force: …

  • Envoy to expats: Retire, invest in Phl
    Envoy to expats: Retire, invest in Phl

    Retire and invest in real estate in the Philippines, especially now that the country has made it to the top 10 retirement destinations in the world. This is the message being spread by the Philippine embassy in Washington, with Ambassador Jose Cuisia Jr. leading the refrain in meetings with various Filipino-American communities in the US. In his talks, Cuisia said that an affordable cost of living as well as warm climate and people are just some of the things that make the Philippines a top …

  • PNPA spotlight falls on Ampatuan grandson
    PNPA spotlight falls on Ampatuan grandson

    The stigma of being a namesake of the principal suspect in the 2009 Maguindanao massacre did not prevent Cadet First Class Andal Ampatuan III from entering and graduating from the Philippine National Police Academy (PNPA). Ampatuan III, now with a rank of police inspector, is a grandson of former Maguindanao governor Andal Ampatuan Sr. The younger Ampatuan was among the 246 graduates of the PNPA “Lakandula” Class of 2015. Ampatuan III’s mother is Bai Rebecca Ampatuan, a daughter of the …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options