Subsidiaries of ACEN Corp., the listed renewable energy arm of the Ayala Group, have voluntarily relinquished two solar energy operating contracts in Quezon and Zambales, citing land acquisition and site access constraints that affected the projects’ development.
Abagat Energy Corp. surrendered its Solar Energy Operating Contract (SEOC) No. 2024-08-938 covering a project site in Pagbilao, Quezon, on Sept. 11, 2026, due to significant challenges in acquiring the required land.
SolarAce2 Energy Corp. followed on Sept. 17, surrendering SEOC No. 2021-05-582 covering an area in Botolan, Zambales, because of site access constraints.
ACEN said the cancellations would have no material impact on its operations because both projects remained in the early stages of development and had yet to reach a final investment decision.
Neither subsidiary had started commercial operations under the contracts.
The move underscores the development risks facing renewable energy projects even before construction begins, with securing suitable land and reliable site access capable of determining whether projects proceed from planning to investment.
For ACEN, however, the two contract relinquishments involve projects that had not yet reached the stage where their cancellation would materially affect the company’s operating portfolio.
