AC Energy Holdings Inc. (Acehi) has partnered with UPC Philippines Wind Holdco I B.V. for the development of several wind power projects in Ilocos Norte, with an initial equity investment of $220 million for 81 megawatts (MW).
The holding company for Ayala Corp.’s power investment announced that it just signed an investment framework agreement and shareholders’ agreement with UPC Philippines Wind to develop wind power projects in Ilocos Norte through their joint venture firm Northern Luzon UPC Asia Corp. (NLUPC).
UPC Philippines Wind is a wholly owned company of UPC Renewables Partners (UPC) and the Philippine Investment Alliance for Infrastructure (Pinai) fund, comprised of the Government Service Insurance System APG and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd.
According to Acehi, an initial equity investment has been agreed by both parties for the first 81-MW project, with an investment value of approximately $220 million. Of the $220-million investment, Acehi will fund 64 percent; Pinai, 32 percent and UPC, 4 percent.
The 81-MW project received a declaration of commerciality on June 17 from the Department of Energy. UPC has nearly 20 years of experience in developing, financing, constructing, owning and operating wind farms in Europe, United States and Asia, with gross generating capacities of approximately 2,000 MW.
Pinai, on the other hand, is a P26-billion fund dedicated to equity investments in Philippine infrastructure assets. It is managed by Macquarie Infrastructure and Real Assets, part of the Macquarie Group.
Moreover, NLUPC has signed the turbine supply, installation and service availability agreements with Siemens Wind Power A/S and Siemens Inc., and has issued the notice to proceed for the project. The project’s initial phase is expected to be connected to the grid by June 2014.
Siemens is a supplier of wind power solutions for onshore, offshore and coastal sites, and has installed over 12,700 wind turbines globally which equals to over 21,100 MW installed capacity as of July 2013. Wind power is part of Siemens’ environmental portfolio.