ACEN Corp. has secured 20-year service contracts for its solar projects in Australia at a price that protects it from low wholesale electricity prices, the Ayala-led energy company said on Tuesday.
In a stock exchange disclosure, ACEN said its unit in Australia bagged the long-term energy service agreements (LTESAs) for its two solar projects at the New South Wales (NSW) government’s first renewable energy and storage auction.
“The LTESAs help encourage investment in the renewables and storage capacity necessary to accelerate the transition to clean, reliable and more importantly, affordable power for Australians,” ACEN Australia Chief Executive Officer Anton Rohner said.
ACEN Australia is the platform representing ACEN’s renewable energy assets in Australia. The energy service agreements are for ACEN Australia’s 720-megawatt (or 936-MW direct current) New England solar project and 400-MW (520 MWdc) Stubbo solar project.
The contracts were secured through the NSW government trustee’s inaugural tender for renewable generation and long-duration storage.
“The LTESAs offer the rights to access a minimum price for generation projects over a 20-year time frame, which protects investors like us from the risk of unexpectedly low wholesale electricity prices,” Mr. Rohner added.
Once fully operational, the New England and Stubbo solar projects can supply power to about 435,000 households, helping the NSW government in reaching its target of 50% remissions reduction by 2030.
“Our focus is on ensuring that we develop projects that offer the right mix of benefits and opportunities for NSW and Australia at large,” said Eric T. Francia, president and chief executive of ACEN, as he commended the government “for its commitment to deliver better value not just to NSW electricity consumers but to project proponents like ACEN as well.”
The energy company said the long-term commercial value of LTESAs will accelerate Australia’s transition to renewables.
To date, ACEN Australia has around 1-gigawatt (GW) capacity under construction worth $1 billion and around 8-GW capacity in the development pipeline in Australia.
At the local bourse on Tuesday, shares in the company fell by four centavos or 0.67% to end at PHP 5.97 apiece. — By Ashley Erika O. Jose