Philippines’ AC Energy and Hong Kong-based solar developer NEFIN will work on distributed solar projects to work towards carbon neutrality in Asia.
AC Energy’s wholly owned subsidiary AC Renewables International (ACRI) will form a joint venture with NEFIN to develop, build and operate rooftop solar projects across Asia.
According to the statement, distributed power generation is expected “to be an increasingly important pillar of the global energy transition”.
The new firm will have generate 21 megawatts (MW) of power and will develop projects with geographies covering Hong Kong, Malaysia, China, and Taiwan, with potential expansion to Australasian countries.
ACRI will initially invest $10 million into the joint venture.
John Yeap of Pinsent Masons, the law firm behind Out-Law, said: “Distributed generation by way of solar rooftop is undoubtedly going to grow across the region. Various countries have already implemented regulations permitting the sale of power directly to a commercial and industrial (C&I) consumer, either through direct wire or through wheeling arrangements.
We will no doubt see developments in this space in the coming few years, driven not least by companies looking to meet their Environmental, Social and Governance (ESG) commitments including in relation to reducing their carbon footprint.”
AC Energy is the energy platform of Ayala, one of the largest business groups in the Philippines. ACEN plans to achieve its goal of reaching 5,000MW of renewables capacity by 2025.