By Rowena Cruz (L-R) ACEN chief financial officer Janel Bea and group general counsel Dodjie Lagazo and Maraj Energy CEO Mark Alburo and leg...
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| (L-R) ACEN chief financial officer Janel Bea and group general counsel Dodjie Lagazo and Maraj Energy CEO Mark Alburo and legal director Romel Bagares at the signing of the share purchase agreement between the companies. (Photo from ACEN) |
REAL, Quezon — ACEN, the renewable energy arm of the Ayala Corporation, announced on Friday the acquisition of the remaining stake in Real Wind Energy Inc. (RWEI), solidifying its full ownership of a 500-megawatt wind farm project in Quezon province. The deal marks a significant step in ACEN's ambitious goal of expanding its renewable energy portfolio and solidifying its position as a leader in the Southeast Asian market.
The wind farm, strategically located on the eastern coast of Luzon, is poised to be one of the largest wind farms in Southeast Asia and a key contributor to the country's renewable energy goals. The project, previously a joint venture with Maraj Energy and Development Corp., will consist of approximately 100 wind turbines, each capable of generating several megawatts of electricity. The exact number of turbines and their individual capacity are yet to be finalized as the project moves into the construction phase.
"This acquisition marks a significant milestone in our commitment to accelerate the energy transition in the Philippines," said Eric Francia, President and CEO of ACEN. "The Quezon wind farm is a testament to our dedication to sustainable development and will play a crucial role in reducing our carbon footprint and providing clean energy to the nation."
ACEN acquired the remaining 60% shares in RWEI from Maraj Energy and Development Corp. on July 31, having already purchased a 40% stake earlier this year. The final price for the acquisition was less than 10% of RWEI’s book value as of March 31, 2024.
The project is expected to generate enough electricity to power hundreds of thousands of homes and businesses, significantly reducing the country's reliance on fossil fuels. It also represents a substantial investment in the local community, with the potential to create jobs, stimulate economic growth, and contribute to local infrastructure development.
The wind farm's location in Quezon province was chosen for its consistent wind resources, which are ideal for generating renewable energy. The province's long coastline and mountainous terrain provide favorable conditions for wind power generation, making it an attractive location for wind energy projects.
Industry experts have dubbed the RWEI project a "unicorn" project due to its strategic location, wind speed, capacity factor, and accessibility. If completed, it is forecast to be the largest wind farm in Southeast Asia. Additionally, it is strategically located close to another ACEN wind project spanning Laguna and Quezon, potentially creating the largest contiguous wind energy corridor in Southeast Asia.
While Maraj Energy gave up its RWEI board seats as part of the deal, it will continue to assist ACEN in completing the project. The two companies also entered into additional undisclosed investment arrangements.
ACEN's acquisition of the Quezon wind farm, coupled with its other renewable energy projects in the pipeline, underscores the company's commitment to expanding its renewable energy portfolio and leading the transition towards a cleaner and more sustainable energy future for the Philippines. The project is a significant step towards achieving the country's ambitious renewable energy targets and reducing its carbon emissions.
ACEN also announced additional investments, including a loan facility to RWEI and a subscription to redeemable preferred shares in its subsidiary Gigasol1 Inc. These investments further demonstrate ACEN's commitment to accelerating the development of renewable energy projects in the Philippines. The company aims to quadruple its attributable renewable energy capacity to 20 gigawatts by 2030, solidifying its position as a key player in the region's renewable energy landscape.
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