Ayala Corporation through its wholly-owned subsidiary Michigan Power Inc. (MPI) entered into a joint venture (JV) with Sta. Clara Power Corporation (SCP) for the development of run-of-the-river (ROR) hydroelectric power projects across the Philippines.
MPI will take a 70% stake in the JV and has committed an initial equity infusion of about PhP 600 million.
The JV follows the company’s recent partnership with Mitsubishi Corporation for solar power and its acquisition of 50% of the iconic Northwind project in Ilocos for wind power. These are all in line with Ayala’s campaign to augment the country’s power supply primarily through renewable and clean energy.
ROR hydroelectric power plant operation involves “borrowing” some river water to turn its kinetic energy into electricity, and returning the same unpolluted water back into the river. It is “green” because it does not produce harmful emissions. Like other renewable power technologies, it is economical as it depends on the “free” energy of nature as fuel.
Ayala Corporation President and Chief Operating Officer, Mr. Fernando Zobel de Ayala said, “This venture builds on our current portfolio of renewable energy assets, which focuses on solar, wind and hydro power technologies. This is an important component of our plan to create a portfolio of power assets over the medium term that blends conventional and sustainable energy sources and contribute to the country’s energy requirements.”
Ayala Corp is one of the largest Philippine conglomerates with diversified business interests including investments in real estate, banking, telecommunications, water infrastructure, electronics, automotive, information technology, business process outsourcing and, recently, renewable energy.
Sta. Clara Power is a power generation company that focuses on ROR hydropower. It is majority-owned by Sta. Clara International Corporation, a construction company with local and overseas projects. Among Sta. Clara Power’s holdings, which will not be part of the JV, are stakes in Loboc hydro, Amlan hydro, and Bakun IPPA.