Alternergy sets P20 billion five-year capex plan to boost RE portfolio

Renewable energy (RE) company Alternergy Holdings Corp. is setting a P20-billion capital expenditure (capex) program to expand the company’s RE portfolio in the next three to five years.

“Alternergy is embarking on a triple play strategy where we are looking at developing run-of-river hydro projects, solar projects, and wind projects,” Alternergy President Gerry Magbanua told reporters at a media roundtable in Makati City on Tuesday.

“In the next three to five years, we will have representative projects for each of these techniques and that’s part of the P20 billion capital expenditure,” Magbanua said.

The Alternergy chief said the P20-billion capex will be funded through a 70:30 debt-equity mix, of which P6 billion will be bankrolled through equity capitalization.

“We will be inviting partners to participate in the equity structure of the projects,” Magbanua said.

So far, Alternergy has developed 67 megawatts (MW) of operational assets in wind and solar power, with another 62MW of hydropower and solar projects being constructed.

In the next three to five years, the company is eyeing to add 300MW to 350MW of RE capacity under its P20-billion capex program, the bulk of which will be wind power generation at 220MW, followed by solar at 33MW and run-of-river hydroelectric power at 50MW, according to Magbanua.

In total, Alternergy is planning to generate 1,245 MW of additional wind, offshore wind, solar, and run-of-river hydro projects over the medium term.

Meanwhile, Magbanua said a portion of the proceeds from its P1.6-billion initial public offering (IPO) set this month will finance the equity component of its P20-billion capex program.

“Take note that for Alternergy, our mantra is not to own 100% of these projects so we will invite partners. Our goal is to have majority stakes in these projects — at least 51% or 50% plus 1 share,” he said.

At P1.28 per share, Alternergy is expecting to raise up to P1.6 billion from its IPO.

The company targets to list on the Philippine Stock Exchange on March 24 with the offer period set on March 13 until March 17.

Alternergy intends to use the net proceeds from the IPO to fund the development and construction of its Solana Solar and Lamut Hydro projects; payment for the acquisition of Kirahon Solar Energy Corp. shares; pre-development expenses of pipeline projects, namely Ibulao Hydro project, Tanay Wind project, Alabat Wind project, and Calavite Offshore Wind project; general corporate requirements; and working capital to operationalize Retail Electricity Supply.

Alternergy, a company founded and chaired by former Energy Secretary Vicente Perez Jr., was involved in the development of the 33MW Bangui Bay wind farm in Ilocos Norte —the first commercial wind farm in Southeast Asia at that time. — DVM, GMA Integrated News