AC Energy Inc. and AMI Renewables Energy Joint Stock Co. will jointly develop up to 80 megawatts (MW) of solar-power capacity in Vietnam.
Both signed engineering, procurement and construction (EPC) contract and financing documents for the development of solar plants in the provinces of Khanh Hoa and Dak Lak, to be commissioned in time for the June 2019 solar feed-in tariff deadline.
“We are excited to expand our development initiatives in Vietnam and work with our local partner AMI Renewables,” said Eric Francia, AC Energy president and CEO. “We appreciate the strong commitment of the Vietnam government to promote renewables, and the strong support from our banking partners that are providing project financing.”
The projects are estimated to cost $83 million, financed with debt and equity. AC Energy will participate with at least 50-percent economic share.
Indovina Bank of Vietnam and RCBC of the Philippines will provide nonrecourse financing for the Dak Lak and Khanh Hoa projects, respectively.
AC Energy formed a platform company with AMI Renewables last year to build renewable-energy plants in Vietnam, including the 352-MW Quang Binh wind project.
This is AC Energy’s second renewable-energy platform in Vietnam.
AC Energy earlier partnered with BIM Group of Vietnam to develop 30 MW of solar-power projects in Ninh Thuan province, Vietnam. The initial 30-MW project broke ground on January 23. It said then that investment for this phase is expected to reach 800 billion VND, or roughly P1.8 billion. Conergy Asia & ME was tapped as the construction partner.
Francia had said the size of the solar-farm contracts increased to 280 MW and that AC Energy and BIM Group plan to further expand the capacity to well over 300 MW. Once completed, the solar farm will become the largest in Southeast Asia.
AC Energy is the energy platform of Ayala, with over $1 billion of invested and committed equity in renewable and thermal energy in the Philippines and around the region.
The company aspires to develop 5 GW of attributable capacity and generate at least 50 percent of energy from renewables by 2025.