ACEN eyes stronger 2026 growth despite Mideast risks

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April 12, 2026 | 12:00am

MANILA, Philippines — Amid mounting risks from the Middle East crisis, Ayala-led ACEN Corp. still expects robust growth this year, aiming to capitalize on the surging interest in renewable energy (RE).

ACEN president and CEO Eric Francia said the company’s domestic and international operations remain steady, noting that tensions have had minimal impact on its existing power plants.

“We don’t rely on fuel, and the tariff is fixed,” Francia told reporters on the sidelines of the 2026 Philippine Energy Forum yesterday.

Global markets, particularly those heavily dependent on imported oil, continue to reel from ongoing disruptions in the Middle East, which have pushed energy prices to record highs week after week.

The Philippines, which imports around 98 percent of its crude oil from Gulf states, has seen the largest jump in domestic fuel prices in its history.

Although oil represents only a small portion of the country’s power mix, its soaring prices have put pressure on other energy sources.

The crisis, in Francia’s view, underscores the urgent need to scale up investments in indigenous power sources, including renewables, to strengthen the country’s energy security.

“There is a compelling case for more investment in renewables and storage to reduce dependence on fossil fuels,” he stressed.

Energy Secretary Sharon Garin earlier said the government is “moving with urgency” to accelerate RE development to ensure projects stay on schedule or even finish ahead of time.

For ACEN, Francia highlighted the company’s substantial inventory of renewable electricity ready to serve customers

“As an alternative to a more expensive fossil fuel price, we should be able to give competitive rates that are also good for the economics of the plant,” he said.

On the flip side, however, Middle East pressures on inflation and interest rates are making ACEN cautious with its investment strategy and capital spending.

“You have to consider that there will be some cost pressure on renewables as well because of supply chain issues, delay issues, cost of capital increase and so forth,” Francia noted.

Still, the ACEN executive remains optimistic for the year, counting on newly energized plants abroad and the restoration of Ilocos wind farms affected by typhoons.

“If you combine all that, I think this year should be much better than last year. And will, therefore, allow us to sustain our investment programs,” he added.

The country’s largest retail RE supplier reported a net income of P3.8 billion in 2025, down 60 percent from P9.36 billion the year before.

Revenues likewise contracted, ending 14 percent lower year-on-year to P32 billion on lower spot market prices and reduced power output in core markets.