- ACEN and CleanTech finalize agreements for solar farm joint venture
- The joint venture will proceed to begin construction of the 133 MW solar and transmission line in Lal-lo, Cagayan to help accelerate the country’s renewables growth
- The project is scheduled to be operational by early 2023, and will generate clean energy to supply to approximately 75,000 homes annually
- One thousand local job opportunities and community initiatives are set to be created during the construction phase
24 March 2022 – ACEN, the listed energy platform of the Ayala Group, ACE Endevor, Inc. (“Endevor”) and CleanTech Renewable Energy 4 Corp. (“CleanTech”) have formed a joint venture company, Natures Renewable Energy Development Corporation (NAREDCO) to develop, own and operate a 133 MW solar farm and transmission line project located in Lal-lo, Cagayan. The companies recently signed a shareholders’ agreement for the strategic partnership, with ACEN and Endevor to have a combined 60% ownership stake in NAREDCO, and CleanTech owning the remaining 40%.
NAREDCO will proceed with the construction the solar farm and transmission line, which has a potential expansion of up to 200 MW. The solar farm will be constructed on a 115-hectare flat land known for its high solar irradiance in Barangays Magapit and Sta. Maria, which will connect to the 69kV NGCP Lal-lo (Magapit) substation via a 3-km transmission line.
Once completed, the 133 MW solar farm will produce 188 GWh of renewable energy annually, enough to power 75,000 households while avoiding approximately 112,405 MT of CO2 emissions annually. About 1,000 job opportunities and community partnerships could be created during the solar farm’s construction stage. It is expected to be operational by early 2023.
“We are delighted to be working with CleanTech to help accelerate our country’s shift to a low carbon economy and add more renewables capacity to our existing 3,300 MW,” said Jose Maria Zabaleta, ACEN Chief Development Officer. “We are excited to bring forward our partnership and we look forward to working with Cleantech as we grow the renewables market here in our home country.”
“Our new partnership with ACEN is a milestone for CleanTech. Partnering with one of the largest listed renewable energy platforms in the region brings a host of opportunities to further our sustainable goals, spur the economy’s growth and ensure the progress of the community,” said Salvador Antonio R. Castro, Jr., President and CEO of CleanTech. “There is much work to be done, but step by step and together with our partners, we will lead the way towards a sustainable future.”
Solar energy has been a key technology in ACEN’s charge towards the energy transition. Rapid technological advancements and cost efficiencies in this space allow the company to continue to expand its renewables footprint across the region.
In October 2021, ACEN announced its commitment to net zero by 2050 along with the rest of the Ayala Group. As ACEN commits to being at the forefront of the renewables revolution, its sustainable developments in the Philippines, such as the Lal-lo, Cagayan solar farm, remain an important initiative that will help the company achieve net zero greenhouse gas emissions, on its way to becoming the largest listed renewables platform in Southeast Asia.
DISCLAIMER: This disclosure may contain forward-looking statements that are subject to risk factors and opportunities that may affect ACEN’s plans to complete the transaction/s subject of this disclosure. Each forward-looking statement is made only as of the date of this disclosure. Outcomes of the subject transaction may differ materially from those expressed in the forward-looking statements included in this disclosure.