A subsidiary unit of Philippines-based Ayala, AC Energy, has started developing a $1bn coal-fired power plant in the south of the country.
The project is in-line with the firm’s strategy to grow its power generation portfolio to 1GW; however, the firm is being careful about its expansion plans for energy developments, and is taking into account the potential for power oversupply in the next three years.
AC Energy CEO John Eric Francia was quoted by Reuters as saying: "We’re obviously cognizant of the potential oversupply."
Developing additional power generation facilities will be dependent on signing off-take agreements, especially for the Luzon island in Philippines.
According to Francia, the island is the anticipated target for more than 2GW of power supply projects, which are likely to be operational by 2018 or 2019.
The conglomerate currently has a power generation capacity for 700MW, including the $1bn power facility on southern Mindanao island.
Mindanao island project has a total power capacity of 540MW, and has been funded by a combination of loan and equity.
AC Energy intends to focus on wind and hydro power projects to drive its capacities in the energy business.