AC Energy Corp., the listed energy platform of the Ayala Group, and UPC Solar Asia Pacific Ltd. launched the construction of the 420-megawatt Masaya solar farm in India.
UPC-AC Energy Solar, the joint venture company, already built 630 MW of capacity across India.
UPC-AC Energy Solar is in the process of securing a 20-year loan from the State Bank of India to fund the project with an estimated project cost of $220 million under a 75:25 debt-to-equity financing scheme.
The joint venture will supply electricity at INR (Indian rupee) 2.71 per kilowatt-hour fixed over a 25-year period under a power supply agreement with the Solar Energy Corp. of India.
The Masaya Solar project is located in the Khandwa District, State of Madhya Pradesh, and is set to produce 691 gigawatt-hours of renewable energy per year, while avoiding 635,720 metric tons of CO2 emissions annually.
The project will also create 500 jobs during its construction stage.
Once completed, the Masaya Solar farm will be UPC-AC Energy Solar’s third and largest solar project in India.
“We are delighted that our partnership with UPC Solar continues to bear fruit in India. The success of our maiden projects, both reaching operational status in second quarter 2021 despite the tumultuous COVID-19 crisis, bodes well for the 420-MW Masaya Solar project,” said Patrice Clausse, head of ACEN’s International Group.
“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 renewable energy goals,” he said.
Pranab Kumar Sarmah, chief executive of UPC-AC Energy Solar and co-founder of UPC Solar Asia Pacific expressed confidence the project would stand the test of both time and budget amid challenging COVID scenario.
“India is one of the world’s largest consumers of energy and producers of renewable energy. We understand the country’s urgency to increase its production of renewables to help meet the demand and support the country’s progress. This landmark development will be a significant addition to the country’s renewables capacity,” he said.
Masaya Solar in India is the latest in ACEN’s string of initiatives to expand its renewables footprint in the region and lead the charge in the renewables revolution.
ACEN announced in October its commitment to net zero by 2050, along with the rest of the Ayala group.
The company has over 3,000 MW of attributable capacity across Asia Pacific, with 18,000 MW in its pipeline of renewables projects being developed organically and with various partners across the region.
An estimated 500 MW of these projects are expected to reach financial close by the first quarter.
ACEN, the listed energy platform of the Ayala Group, aspires o be the largest listed renewables platform in Southeast Asia, with a goal of reaching 5,000 MW of renewables capacity by 2025.