AC Energy DevCo. Inc. of Ayala Corp. plans to put up a diesel power plant with an output of up to 150 megawatts in Pililla, Rizal province to meet the peaking and reserve requirement of the Luzon grid.
“We’re looking at developing a peaking/ancillary plant, diesel in Pililla. We’re now going through pre-development process—permitting, ECC (environmental compliance certificate), we’re doing the studies now,” AC Energy chief executive officer John Eric Francia told reporters.
AC Energy, which earlier served as the holding company of the Ayala’s energy investment, is now the umbrella brand for its energy group of companies after the board approved a restructuring last week.
AC Energy’s brand now consists primarily of AC Renewables Inc. and ACE Thermal Inc.
“We’re hopeful that we’ll get to start the construction as soon as we complete all the requirements. We’re hoping this year,” Francia said.
The company has already received approval to conduct a grid impact study for the planned diesel facilities in Rizal.
Francia said the company was exploring diesel power plant opportunities because “we believe the country will need more peaking and reserve, ancillary capacity… especially in a world where you inject more renewables.”
Francia said as more renewable energy was injected to the grid, there could be more intermittency of power and “you need ancillary for that.”
“This (Pililla plant) is going to be fast-start,” he said.
Francia, meanwhile, said Ayala decided to restructure the business, citing that renewables and conventional power were two distinct businesses that attract different types of investors.
“This move therefore provides AC Energy a sharper proposition and greater flexibility in the event that we broaden our investor base for our platforms,” he said.