Ayala-led ACEN, with its partner UPC Solar Asia Pacific, has begun its construction of the 420-megawatt peak (MWp) solar farm in India.
Located in the state of Madhya Pradesh, the Masaya Solar Farm is expected to produce 691 gigawatt-hours of renewable energy (RE) while avoiding 635,720 MT of CO2 emissions.
The solar farm is through the companies’ joint venture, UPC-AC Energy Solar, and it would be their third and largest solar project in India.
“Though the pandemic continues to present challenges, we are confident that we will complete the construction of this solar development safely and at the earliest possible time, to contribute even more meaningfully to India’s [(RE)] goals,” ACEN’s International Group Head Patrice Clausse said in a statement.
UPC-AC Energy Solar said it can create around 500 jobs during the construction of the solar plant.
“India is one of the world’s largest consumers of energy and producers of [RE]. We understand the country’s urgency to increase its production of renewables to help meet the demand and support the country’s progress,” said Pranab Kumar Sarmah, CEO of UPC-AC Energy Solar and co-founder of UPC Solar Asia Pacific.
“This landmark development will be a significant addition to the country’s renewables capacity,” he added.
The solar farm is expected to cost around $220 million. The joint-venture company is looking to secure a 20-year loan from the State Bank of India to fund the project in a 75:25 debt-to-equity financing scheme.
ACEN President and CEO Eric Francia indicated during the initial episode of Power Podcast in November 2021 that the Masaya Solar Farm project, along with another solar venture in Cagayan, would push the firm towards attaining a 3,000-megawatt (MW) RE portfolio early this year. Ayala’s power arm aims to have a 5,000MW all-RE portfolio by 2025.
The company currently has 630MWp worth of solar projects all across India.