IPO-bound renewable firm Alternergy spending P20B to expand portfolio

Alternergy currently operates the 54-megawatt Pililla wind farm in Rizal province. —PHOTO FROM ALTERNERGY WEBSITE

Local renewable energy company Alternergy Holdings Corp. is allotting P20 billion in capital expenditures in the next three to five years to fund its renewable energy projects, according to its top official.

“As you know, Alternergy is embarking on a triple-play strategy,” said Alternergy president Gerry Magbanua, referring to the company’s plan to develop 33 megawatts (MW) of solar, 220 MW of onshore wind and 50 MW of run-of-river hydro projects.

The budget would be funded through 30-percent equity and 70-percent debt, a strategy that would be used in its more expansive goal of developing about 1,370 MW of clean energy projects in the next five years.

To achieve 1,370 MW, the company founded by former Energy Secretary Vicente Perez would simultaneously develop offshore wind projects while partnering with other companies.

“Take note that our mantra is not to own 100 percent of these projects. We will be inviting partners to participate in the equity structure for these projects,” Magbanua noted.

He said the goal was to have a majority stake of at least 50 percent plus one share in each of the projects.

Tanay wind farm

“There are a number of interested parties who want to partner with us,” Magbanua said, but declined to divulge further.

The 54-MW Pililla wind farm in Rizal province is the only generating plant in Alternergy’s wind portfolio currently. Three wind projects are under development, including the 100-MW wind farm in Tanay that will serve as an extension of Pililla.

As for its solar power portfolio, it currently has nine under its belt including the 12.5-MWp (megawatt peak) Kirahon solar farm in Misamis Oriental. It is developing a $29-million hybrid project in the Republic of Palau, which is expected to be completed in April.

For hydro, it has three projects in Ifugao province, while one in Nueva Ecija province is still under construction.

The company is set to hold an initial public offering (IPO) on March 24. Share price was set at P1.28 each.

https://business.inquirer.net/390036/alternergy-to-raise-p1-6b-in-years-first-ipo