Armstrong Asset Management (AAM) is to invest $29 million in solar plants in the Philippines, starting with one of the world's largest diesel-replacement projects.
The Singapore-based, clean energy-focussed asset manager has announced a partnership with development company, nv vogt Singapore – a joint venture between Indian company APCA Power and Berlin-based ib vogt GmbH, set up to develop projects in the Philippines and south-east Asia.
The first project to receive investment as a result of the partnership will be a 6.25MW ground-mounted and grid-connected solar power plant in South Cotabato in the southern region of Mindanao.
It is believed that the project, which is scheduled to begin construction this month and is expected to commence commercial operations by December, will be among the world's largest diesel-replacement power plants.
The investment marks the first by the fund and nv vogt in the Philippines.
"With the projected power deficit forecast for 2015 in the Philippines, this project can serve as a benchmark for clean and quick decentralised energy solutions, without the need for government subsidies," said Andrew Affleck, managing partner of AAM.
The project has a power purchase agreement with 'A+' rated South Cotabato I Electric Cooperative.
Anton Milner, managing director of the solar power plant business at ib vogt and chairman of nv vogt Singapore, said South East Asia is "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.
AAM's commitment is expected to be able to fund several projects in nv vogt's pipeline.
AAM reached a final close on its debut $164 million clean energy fund in November, after receiving the backing of investors such as IFC, DEG, FMO, Proparco, SIFEM, GEEREF and Unigestion.
So far, AAM has made five investment commitments covering a range of utility-scale renewable energy infrastructure projects in Thailand, Indonesia, Philippines, Vietnam and Cambodia.
Peter Cripps