Out-Law News 1 min. read
16 Oct 2019, 10:53 am
AC Energy and UPC Renewables have formed a joint venture (JV) to develop 1GW of renewable power capacity in three countries in Asia.
AC Energy will provide a $20 million development loan to UPC-AC Energy Solar in the first phase of the partnership and the initial focus will be on India, South Korea and Taiwan, according to an AC Energy statement.
UPC Renewables chairman Brian Caffyn said that the move would allow it to continue to expand its influence in the region. AC Energy chief operating adviser and AC Renewables International director Patrice Clausse said that “to enter into a large and bankable solar market like India is consistent with AC Energy’s goal to exceed 5GW by 2025, with at least 50% to be sourced from renewables”.
AC Energy and UPC Renewables began a partnership in 2013, jointly owning and operating the 81MW Pagudpud wind farm in the Philippines as well as the 75MW Sidrap wind farm in South Salawesi in Indonesia.
In May 2018 AC Energy acquired half of UPC Renewables’ Australian business for $30m, and agreed to inject an additional $200m to fund project equity, according to IJGlobal.
Renewables now said that in August AC Energy and UPC Renewables agreed to buy 51% in a 250MW pumped hydro project and a neighbouring 300MW solar scheme, both located in South Australia.
Project finance expert John Yeap of Pinsent Masons, the law firm behind Out-Law, said: "Given the two companies have invested in projects previously, a logical step forward would be to formalise a joint venture arrangement. Their complementary strengths suggest a partnership that would enable them to achieve their strategic goals. This is an exciting development for the renewable energy sector in Asia".
AC Energy is the energy platform of Ayala, one of the largest business groups in the Philippines. UPC Renewables is a leading renewable energy developer in the Asia Pacific and established in 1995. UPC-formed companies have developed more than 73 operating wind and solar projects with a total installed capacity of 4,500 MW and an investment value of over $8.4 billion.