By Sheldeen Joy Talavera, Reporter
AYALA-LED ACEN Corp. is set to enter the offshore wind sector through the acquisition of a 25% minority stake in a 1,000-megawatt (MW) offshore wind power project in Camarines Sur being developed by Danish firm Copenhagen Infrastructure Partners (CIP).
ACEN signed definitive agreements with CIP’s Growth Markets Fund II for the planned investment, subject to regulatory approvals, the listed company said in a disclosure on Thursday.
CIP, through its local affiliate Copenhagen Infrastructure New Markets Fund Philippines Corp., was the first 100%-foreign-owned entity awarded wind energy service contracts by the Department of Energy (DoE) in 2023.
The $3-billion San Miguel Bay Offshore Wind Power Project is part of CIP’s Philippine portfolio, which also includes a 650-MW project in Northern Samar and a 350-MW project in Dagupan, Pangasinan.
The company expects to invest $5 billion in its wind power projects in the Philippines.
In 2023, the San Miguel Bay project was certified as an energy project of national significance and was granted Green Lane status by the Board of Investments, qualifying it for expedited permitting.
“Offshore wind is poised to play a vital role in diversifying the country’s energy mix. ACEN is pleased to partner with CIP, a global leader in the offshore wind sector. We look forward to collaborate on this trailblazing initiative,” ACEN President and Chief Executive Officer Eric T. Francia said.
Robert Helms, partner at CIP’s Growth Markets Fund II, said that it entered into a partnership with ACEN as “one of the most experienced renewable energy developers in the Philippines.”
“Together with CIP’s offshore wind expertise, we believe that ACEN’s experience and domestic and international track record in project execution and stakeholder management will set a strong foundation for successful development of the Camarines Sur offshore wind project, including anticipated participation in the upcoming first offshore wind auction,” Mr. Helms said.
CIP is aiming to make the Camarines Sur project among the first operational offshore wind farms in the Philippines, in support of the government’s goal of generating the country’s first offshore wind output by 2028.
The World Bank’s 2022 Offshore Wind Roadmap for the Philippines estimates the country’s offshore wind potential at more than 178 gigawatts (GW). The DoE is currently supporting various offshore wind developers, including CIP, whose total proposed capacity exceeds 16 GW.
“The collaboration between the two companies is poised to establish a benchmark for offshore wind in the region and unlock further potential for large-scale clean energy projects,” ACEN said.
Juan Paolo E. Colet, managing director of China Bank Capital Corp., described the acquisition as a “powerhouse partnership” for offshore wind development in the Philippines.
“CIP is a global leader in the field while ACEN is a homegrown renewable energy champion. Their combined global and local expertise and resources will be very important in executing one of the most complex renewable energy projects in the country,” he said in a Viber message.
Having CIP and ACEN as project sponsors “will certainly help attract a strong syndicate of banks to finance such a landmark undertaking,” Mr. Colet said.
ACEN said the investment will contribute to its 7-GW attributable renewables portfolio composed of operational, under-construction, and committed projects. The company aims to increase this to 20 GW by 2030.
