Connect with us

Hi, what are you looking for?

Economy

Investing in renewable energy limits financial risks — AC Energy’s Francia

FINANCIERS of renewables are able to limit their financial risks, because they can invest in smaller amounts on those projects, the head of one of the fastest growing Philippine energy companies said on Monday.

“The advantage of renewables, I should say, is that you can do your investments in digestible, reasonable chunks, unlike a large scale thermal plant where you typically invest billions of dollars,” AC Energy, Inc. President and Chief Executive Officer Eric T. Francia said.

“With renewables, you can invest in hundred or two hundred million dollar at a time (and) that manages or limits your risk,” he said, during a webinar organized by the Philippine Energy Independence Council and the European Chamber of Commerce of the Philippines.

Last week, Mr. Francia disclosed to reporters that AC Energy is planning to sell its stakes in its coal-fired power plant projects in line with its vision to generate more than half of energy from renewables by 2025.

He also shared that the Ayala-led firm was able to raise $300 million in green bonds last week. Green bonds are fixed-income instruments that are tapped to raise money for projects related to climate and environment.

During the webinar, he expressed concern on the possibility that no one will want to invest in the energy sector if the market experiences a sudden rebound amid the new normal.

“My concern is that we go to the extreme that nobody invests and we will suddenly have a shortage in 2023 (or) 2024, if the market rebounds sooner and stronger than expected. At least, we can hedge up a bit by having measured investments on the renewable space,” Mr. Francia said.

The AC Energy executive encouraged potential users and investors to make the most of the lower rates being offered by monetary authorities.

Shares in Ayala Corp. on Monday went down by 0.58 % to close at P850 each. Those of its unit AC Energy Philippines, Inc., which makes up the firm’s local energy projects, surged by 8.97 % to finish at P6.32 apiece. — Angelica Y. Yang

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

By Chelsey Keith P. Ignacio Education can open the doors to abundant opportunities, from achieving one’s dream, helping the family, or even contributing to...

Economy

Sustainability has transcended trends and has become somewhat of an art form in itself. In business, it has now been refined to qualify as...

Economy

Intellicare believes that the way forward for healthcare is balancing high-touch and high-tech care. The disruption brought about by the global pandemic proved to...

Economy

The honest truth: No one came out of the COVID-19 pandemic in quite the same way. The pandemic was an isolating period of self-discovery,...

Economy

Ayala Museum and Globe bring a new cultural learning experience with the Globe Digital Gallery Ayala Museum, under the management of Ayala Foundation, Inc....

Economy

By Diego Gabriel C. Robles THE Philippine economy expanded by 7.4% in the second quarter — slower than expected — as rising inflation weighed...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

Instagram still holds the top spot for social media in terms of building brand reputation and expanding business potential. Every day, more and more...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.