ACEN injects P1.15 billion into unit for Zambales solar project

ACEN CORP. is investing P1.15 billion in a unit developing a solar farm in Zambales, supporting the construction of a project that forms part of its renewable energy expansion pipeline.

ACEN said in a stock exchange filing on Thursday that it had entered into a subscription agreement with unit Giga Ace 8, Inc. for additional shares to fund the development of a 300.011-megawatt-peak (MWp) solar project in Palauig, Zambales.

The subscription involves 3.44 million common shares priced at P10 each, 30.98 million redeemable preferred A shares at P10 each and 8.03 million redeemable preferred shares at P100 each, for a total investment of about P1.15 billion.

Giga Ace 8 serves as ACEN’s special purpose vehicle for renewable energy projects and is developing what is expected to become the company’s second-largest solar facility.

The project carries an estimated cost of P16 billion. In an earlier filing with the Department of Environment and Natural Resources, Giga Ace 8 sought approval to expand the project’s planned capacity to 420 MWp from 300.011 MWp, raising the estimated investment to P26 billion. The expanded development includes a battery energy storage system.

The facility supports ACEN’s efforts to increase its renewable energy portfolio in the Philippines. As of end-March, the company had about 1,495 MW of installed solar capacity in the country, accounting for roughly 21% of its 7-gigawatt renewable energy portfolio.

ACEN has allotted more than P80 billion in capital expenditures this year to fund projects in the Philippines and overseas as it pursues capacity growth across its renewable energy business.

The company reported attributable net income of P2.92 billion for the first quarter, up 49.7% from a year earlier.

Revenue rose 42% to P10.74 billion, driven by growth in its retail electricity supply business, the implementation of bilateral power supply contracts and contributions from recently energized projects.

Shares of ACEN gained three centavos, or 0.94% to close at P3.23 each on the Philippine Stock Exchange. — Sheldeen Joy Talavera