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ACEN Corp. has extended up to ₱850 million in short-term loans to wholly owned subsidiary Palauig Solar 1 Inc. to support the development of a battery energy storage system (BESS) project in Zambales, as the Ayala-led energy company accelerates investments in renewable energy and storage facilities.
In a disclosure to the Philippine Stock Exchange, ACEN said the loan agreement was executed on May 1 to finance the construction of the Palauig 1 Battery Energy Storage System project, a 35-megawatt (MW) and 140-megawatt-hour (MWh) facility that will be integrated with the existing 63-MW Palauig Solar 1 plant in the municipalities of Salaza and Cauayan.
The project forms part of ACEN’s broader push to expand its renewable energy portfolio and strengthen grid reliability through energy storage technologies.
The company recently held the groundbreaking ceremony for the BESS facility, which is expected to complement the output of the Palauig solar plant by storing excess power generated during peak sunlight hours and dispatching electricity when demand rises or solar generation declines.
Expansion Of Solar And Storage Portfolio
The first phase of the Palauig solar project was completed in 2021 and remains ACEN’s second-largest solar farm. The facility currently supplies electricity to around 131,670 households while helping avoid an estimated 383,460 metric tons of carbon dioxide emissions annually.
ACEN is also pursuing a second phase expansion of the Palauig solar facility, which is expected to add around 300 MW of capacity at an estimated cost of about ₱16 billion. Based on the company’s 2025 report, the Palauig battery storage project is targeted for completion next year.
The investment comes as ACEN ramps up spending for renewable energy projects across the country. The company said capital expenditures this year are expected to exceed ₱80 billion, significantly higher than the ₱55 billion allocated in 2025 for wind, solar, and battery developments.
Around ₱60 billion, which accounts for 75 percent of the projected spending, will be allocated to projects in the Philippines.
Raising Capital
ACEN President and Chief Executive Officer Eric Francia said the company has been reviewing financing options over the next six to 12 months to support long-term growth plans while maintaining a strong balance sheet.
“There are ongoing reviews on all levels,” Francia told reporters previously, adding that “there are already bankers on board” to support the company’s expansion initiatives.
While Francia did not disclose the exact amount targeted for fundraising, he noted that it would likely be smaller than the company’s planned ₱30-billion stock rights offering being eyed within 2026.
The company said it remains committed to pursuing and developing additional renewable energy projects, particularly battery storage systems that are expected to play a larger role in stabilizing renewable power generation.
Renewable Growth
ACEN ended 2025 with more than 7,000 MW, or 7 gigawatts, of attributable renewable energy capacity, including operational, under-construction, and committed projects in the Philippines and overseas markets.
For 2026, the company plans to complete or begin construction on another 1,000 MW worth of energy projects, most of which are expected to come from battery energy storage developments.
Despite facing operational and market headwinds last year, ACEN said its long-term outlook remains positive.
The company posted a net income of P3.8 billion in 2025, down 60 percent from the previous year due to weaker electricity prices, lower solar irradiation in key areas, and reduced generation from offline wind assets in Northern Luzon.
“Despite these headwinds, our core business and long-term outlook remain resilient,” Francia said. “As we look ahead, we will continue to prioritize increasing our contracted capacity and accelerating investments in energy storage, while ensuring steady, continued progress on our pipeline projects,” he added.
ACEN aims to expand its renewable energy capacity to 20,000 MW by 2030 as part of its long-term strategy to provide cleaner and more reliable energy while advancing its goal of achieving net-zero greenhouse gas emissions by 2050.
Apart from the Philippines, ACEN has renewable energy projects in Australia, India, Vietnam, Indonesia, Laos, Taiwan, Bangladesh, Malaysia, and the United States.
Source:
https://malaya.com.ph/business/corporate/acen-extends-up-to-p850m-loan-to-zambales-solar-subsidiary