PHILIPPINE BUSINESS NEWS, MANILA — Armstrong Asset Management (AAM) is to invest $29 million (P1,277m) in funding the development of a series of solar power projects in the Philippines.
The Singapore-based, clean energy-focused asset manager has announced a partnership with development company nv vogt, a Singapore-based joint venture between India’s APCA Power and Germany’s ib vogt.
The first project to receive their investment in the Philippines will be a 6.25MW ground-mounted solar park in South Cotabato, Mindanao.
The project, which should begin construction this month, is expected to commence commercial operations by December and will be among the world’s largest diesel-replacement power plants.
“With the projected power deficit forecast for 2015 in the Philippines, this project can serve as a benchmark for clean and quick decentralized energy solutions, without the need for government subsidies,” said Andrew Affleck, managing partner of AAM.
The South Cotabato project has agreed a PPA with South Cotabato I Electric Cooperative. All of the power generated will replace diesel generation.
Anton Milner, managing director of the solar power plant business at ib vogt and chairman of nv vogt Singapore, said the company had a “bullish view” of the prospect for PV (Photovoltaic) energy production in Southeast Asia, being “the ideal region to develop economically viable renewable energy projects”.
“We believe solar power is a compelling need as well as attractive opportunity in the developing markets of Asia,” he said. “Our first project in the Philippines is doubly important because it will provide clean and unsubsidized solar PV electricity benefiting the wider community and it is one of the largest diesel-offset projects in the world to date, which is an important future market.”
It is believed that AAM’s investment will fund several more solar projects for nv vogt in the Philippines. AAM has, to date, made five investment commitments covering a range of renewable energy projects in Thailand, Indonesia, Vietnam and Cambodia, as well as the Philippines