Alternergy sets P20 billion capex

MANILA, Philippines — Renewable energy firm Alternergy Holdings Corp., which will soon debut on the Philippine Stock Exchange, has set a capital expenditure of P20 billion in the next three to five years to build up to 350 megawatts (MW) of green projects.

In a media roundtable yesterday, Alternergy president Gerry Magbanua said the company has lined up 220 megawatts (MW) of onshore wind, 33 MW of solar and 50 MW run-of-river (ROR) hydro projects in the medium term.

“For the entire group in the next three to five years, we’re looking at a total capex of P20 billion for the lineup of the projects we have. As you know, Alternergy is embarking on a triple play strategy where we’re looking at developing ROR hydro projects, solar projects and wind projects,” he said.

Funding for the capex will be 30 percent equity and 70 percent project financing.

Alternergy is looking to partner with other developers with an aim to maintain majority ownership in each project company.

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

“The goal is to have majority stakes in these projects, at least 51 percent or 50 percent plus one share,” he said.

The company is currently in talks with several potential partners – both local and foreign – but no definite partnerships have been closed yet.

“There’s a number of interested parties who want to partner with us in other technologies.

For example in solar, we have been approached by some developers to become partners with us…those are some opportunities we are looking at,” Magbanua said.

Alternergy will offer of up to 1.150 billion in primary shares, representing 30.11 percent of the company’s economic ownership, at a maximum price of P1.48 per share.

The company will also issue an over-allotment option of up to 115 million shares for a stabilization fund to be managed by BDO Capital, the joint issue manager and joint lead underwriter.

Offer period will run from March 13 and end on March 17, with Alternergy eyeing to list on the PSE on March 24.

As for the offtakers of these projects, Alternergy is looking to fully contract these projects through various options.

Its $29 million solar photovoltaic (PV) and battery storage project in Palau – its first international energy project – is already fully contracted through a bilateral agreement with Palau Public Utilities Corp. (PPUC).

Its Solana solar project in Hermosa, Bataan is already 50-percent contracted.

“For the other 50 percent, we’re still talking to other potential offtakers, such as RES (retail electricity suppliers),” Magbanua said.

For the wind projects, Alternergy will line these up for the green energy auction program (GEAP).

“There’s gonna be another set of auctions this year so we expect to participate in that auction,” Magbanua said.

Last year, the Department of Energy (DOE) auctioned off 2,000 MW of renewable energy (RE) capacity under GEAP.

Meanwhile, Magbanua said the ROR hydro projects are being eyed to secure feed-in tariff (FIT) perks, after the DOE extended the system for this particular technology due to low uptake.

Alternergy is a RE holding company that has a portfolio of investee companies which embarked on different renewable energy projects such as wind, solar, hydro, floating solar and battery storage power projects.

It aims to build 1,245 MW of renewable energy capacity in the next five years.