The Market Monitor Minding the Nation's Business
AC Energy Holdings Inc., the power unit of Ayala Corp., has scrapped plans to put up a solar project in Sta. Cruz, Davao del Sur province, following a stockholders’ vote.
In a report to the Philippine Stock Exchange last Friday, the company said its stockholders voted not to pursue the project.
PhilNewEnergy Inc. (PNE) is the project company for the potential solar farm, a joint venture with Mitsubishi Corp. subsidiary DGA PNE BV.
With the development, AC Energy also approved the shortening of the corporate term of PNE.
No other details on the term agreement of the companies were provided.
According to earlier reports, the solar project has an estimated cost of P3.33 billion and was targeted to start commercial operations in March 2015.
AC Energy chief executive John Eric Francia said last year that the firm’s plans to put up a 35-megawatt (MW) solar project was shelved due to its lack of commercial viability—even with the higher P9.68 per kilowatthour (kWh) solar Feed-in-Tariff (FIT) subsidy during that time.
The FIT is granted to renewable energy projects that are constructed within a government set deadline.