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ACEN's $15B Plan for 20,000MW in Renewables by 2030

ACEN to invest $15 billion to quadruple its renewable energy capacity to 20,000MW by 2030, expanding globally amidst economic challenges.

By Max Weldon

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4/18, 03:08 EDT
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Key Takeaway

  • ACEN Corp. plans to invest $15 billion to quadruple its renewable energy capacity to 20,000MW by 2030, focusing on wind and solar.
  • Approximately $6 billion of the investment is dedicated to projects in the Philippines, aiming at addressing the country's energy supply issues.
  • The company's strategic expansion includes a diversified global footprint across Australia, Vietnam, India, and Indonesia to mitigate market risks.

ACEN's Ambitious Expansion

ACEN Corp., the energy arm of the Ayala Corp. conglomerate in the Philippines, has laid out an ambitious plan to significantly increase its renewable energy capacity. Chief Executive Officer Eric Francia announced the company's intention to invest $15 billion to expand its renewable power generation capacity to 20,000 megawatts by 2030. This move is part of ACEN's strategy to capitalize on the growing demand for renewable energy sources and to contribute to the global transition towards cleaner energy.

Francia, in an interview with Bloomberg Television’s Haslinda Amin, highlighted the company's focus on accelerating its wind and solar projects. A significant portion of this expansion, approximately $6 billion, is earmarked for projects within the Philippines over the next six years. This decision comes at a time when the country is experiencing tight energy supply issues, underscoring the importance of increasing renewable energy capacity domestically.

Strategic Growth Amid Rising Interest Rates

The CEO also touched upon the company's approach to managing its ambitious growth in the face of economic challenges, such as rising interest rates. Francia mentioned that ACEN achieved its target of 5,000MW capacity two years ahead of schedule and is now looking to "calibrate the growth" moving forward. He emphasized the importance of planning ahead and being strategic about investment timing, suggesting that the company would accelerate its investments once interest rates stabilize.

Diversified Global Footprint

ACEN's expansion is not limited to the Philippines. The company has established a presence in several other countries, including Australia, Vietnam, India, and Indonesia. This diversified geographic footprint is a strategic move that allows ACEN to mitigate risks associated with its operations, such as foreign exchange volatility. Francia pointed out that having businesses in multiple countries provides the company with a buffer against various market risks, enabling more stable growth in its renewable energy ventures.

Management Quotes

  • Eric Francia, CEO of ACEN Corp.:

    "ACEN is on full-speed expansion with its wind and solar projects, of which some will be in the Philippines where supply is tight." "The company will calibrate the growth after achieving its 5,000MW of capacity two years ahead of schedule." "With rising interest rates, you just need to plan ahead, and when the rates taper, that’s when you step up the gas pedal again." "Its diversified footprint affords the company to manage risks, including foreign exchange volatility."