ACEN Corp. is actively exploring strategic and technical partnerships to advance its offshore wind ambitions in the Philippines, company president and CEO Eric Francia said in a recent interview.
“If and when we do offshore wind projects, we definitely will have to do it with a strategic/technical partner,” Francia stated, noting that the company does not currently have the expertise required for such developments.
ACEN holds at least three offshore wind service contracts and is eyeing participation in the Department of Energy’s fifth Green Energy Auction Program (GEAP 5), which is expected to focus on offshore wind. “We are exploring the space, but it’s too early to tell now,” Francia said. “We will not only depend on our own organic projects but we’re also looking at whether we can partner in the offshore wind space to be able to participate earlier than we otherwise would have.”
He added that it may take more than five years before the company is confident in making financial investment decisions for offshore wind. “We can see that that’s probably going to take more than five years before we can be comfortable getting to financial investment decisions,” he said.
Francia declined to disclose further details on potential tie-ups but emphasized, “We’re active in exploring the potential partner but we cannot say anything further than that.”
ACEN’s push into offshore wind comes as it navigates separate technical and regulatory challenges for a planned floating solar project on Laguna de Bay. The company is developing solar installations across 800 hectares of the lake, but concerns over water depth, wind and wave conditions, and grid connectivity are complicating the investment case.
“We’re hoping to see a tariff that would justify an investment, especially because there are a lot of unknowns because it’s a relatively new technology that we are trying to learn here,” Francia said. “Frankly speaking, I’m not sure the initial gear price for floating solar will work.”
ACEN is awaiting the regulator’s final decision, which Francia said will be “critical because it drives the economics.”
What’s your take on ACEN’s offshore wind strategy and search for partners? Let us know your thoughts and insights.
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