Oct 6, 2014 - Philippine-based conglomerate Ayala Corp (AC:PM) has put on hold its plans to develop a 35-MW solar power project in Davao del Sur province, The Philippine Star said today, citing a company official.
The Mindanao solar project, which marked Ayala Corp’s entry into the solar segment, was to be developed by its power unit AC Energy Holdings Inc in partnership with Japan’s Mitsubishi Corp (TYO:8058).
The firm’s decision is a result of the difficult economics of solar, Ayala Corp’s head for corporate strategy and development John Eric Francia told the newspaper, adding that civil works and electro-mechanical costs are the most expensive part of the scheme. He noted that the firm is focusing on other technologies such as hydro and wind.
Ayala Corp has committed to invest USD 1 billion (EUR 799m) in power infrastructure projects between 2012 and 2016 and expects to build over 1,000 MW of conventional and renewable power plants by 2016.
In a drive to promote renewable energy, the Filipino government launched a feed-in-tariff (FiT) programme, under which such installations receive an incentive of PHP 9.68 (USD 0.215/EUR 0.172) per kWh of electricity generated. The preliminary FiT rate was approved by the Philippines Energy Regulatory Commission in late July 2012. The plan is for it to be changed every three years.
(USD 1.0 = EUR 0.799)
(PHP 10 = USD 0.222/EUR 0.178)
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