Ayala-led AC Energy (ACEN) will be selling its three aging bunker fuel-based power barges, as part of the company’s plans to prioritize renewable energy (RE).
In a disclosure to the Philippine Stock Exchange on Monday, ACEN said that its executive committee has approved the sale of Power Barge 101 to Enrique Razon-led Prime Strategic Holdings, Inc. Meanwhile, Power Barges 102 and 103 will be sold to Cebu-based SPC Power Corporation. Both buyers may assign the barges to their subsidiaries or affiliates.
Power Barge 101 is an operating power plant, while Power Barges 102 and 103 are inactive. The three barges were previously owned by Phinma Energy, which AC Energy bought in 2019.
“The sale of the power barges is expected to be completed in the fourth quarter of 2021, subject to satisfaction of agreed conditions precedent, including obtaining the applicable regulatory approvals,” ACEN said.
AC Energy President and CEO Eric Francia said in November 2020 that the firm is dropping coal from its power generation portfolio, as part of plans to build 5,000 megawatts (MW) in RE capacity. Given this, it divested from the GNPower Kauswagan coal plant project in March. Before that, it announced plans to divest from the GNPower Dinginin venture.
Meanwhile, the company also approved amendments to its Power Administration and Management Agreements (PAMAs) with wholly-owned subsidiaries CIP II Power Corporation (CIP II), Bulacan Power Generation Corporation (BPGC), and One Subic Power Generation Corporation (OSPGC) to update the fixed capacity fees billable to the parent firm and include a variable capacity fee billable by CIP II and BPGC among others.
CIP II and BPGC respectively own and operate a 21MW diesel plant in Bacnotan, La Union and a 52MW diesel plant in Norzagaray, Bulacan, while OSPGC leases a 116MW diesel facility in the Subic Bay Freeport. The amendments to the PAMAs took effect last July 1.