AC Energy & UPC Renewables sign Indonesian Deal

A UNIT of AC Energy Holdings Inc. (AC Energy) has partnered with UPC Renewables Asia Pacific Holdings Ltd. and UPC Renewables for a power project in Indonesia.

“AC Energy International Holdings Pte Ltd. entered into a development funding arrangement with Asia I Ltd. for the development of small island power projects in Indonesia,” AC Energy said.

Under the terms of the agreement, AC Energy International agreed to provide funding for the development of power-generation projects with sub-50-megawatt (MW) capacities. AC Energy will also have accompanying rights to participate in further construction funding of other Indonesian renewable-energy projects.

“This agreement will broaden AC Energy’s participation in the Indonesian market, as well as deepen our strategic partnership with UPC Renewables” said Eric Francia, AC Energy president and CEO. “Indonesia has huge unserved demand, especially in smaller islands, which this initiative aims to address.”

UPC Renewables’s and AC Energy’s partnership started in 2013 for the development, construction and operations of North Luzon Renewable Energy Corp., an 81-MW wind-farm project in Pagudpud, Ilocos-Norte. In January the two groups achieved financial closing in relation to their 75-MW Sidrap wind-farm joint venture project in South Sulawesi, Indonesia, which is the first-ever utility-scale wind-farm project in Indonesia with an expected operations date of February 2018.

UPC Renewables is a leading global energy player that develops, finances, constructs, owns and operates a portfolio of renewable-energy generation assets. UPC Renewables with its partners have successfully developed and operated renewable-energy projects in Italy, the US, Canada, China and the Philippines. The announcement came after Francia’s visit in Indonesia over the weekend.

Meanwhile, AC Energy and Star Energy Geothermal Holdings Pte. Ltd. entered into definitive agreements for the transfer of 99 percent of their consortium interests in Acehi-Star Holdings Inc. (Acehi-Star) to AllFirst Equity Holdings Inc.

Acehi-Star is a special purpose company that signed a share sale and purchase agreement with Chevron in December 2016 to acquire Chevron’s Philippine geothermal assets subject to the satisfaction of certain conditions precedent, including the approval of the Philippine Competition Commission.