MANILA, Philippines — Alsons Consolidated Resources (ACR) of the Alcantara Group plans to invest at least P6 billion in the next three years as the company gears up for further growth with its entry into the renewable energy space.
“We shall continue to invest and expand the company’s power generation portfolio in renewable energy projects,” ACR chief investment and strategy officer Antonio Miguel Alcantara said during the company’s annual stockholders’ meeting yesterday.
ACR is set to start operations of its 14.5-megawatt (MW) Siguil hydro power plant in Sarangani Province before the end of the year, marking its foray into renewable energy.
“The Siguil project expected to be in commercial operations before end of the year is a significant, but initial investment in the long-term plan,” Alcantara said.
He said the company is likewise working on launching two more projects for its hydro project pipeline.
“We will actively develop and be on the lookout for other hydro-related opportunities,” he said.
Meanwhile, Alcantara said ACR is actively working on developing solar power projects in Mindanao and have already identified promising opportunities.
“With the addition of solar as an immediate focus area for our group, we intend to launch our first solar project by the end of 2024,” Alcantara said.
“As we expand out of Mindanao, we are in the process of constructing 83-MW inland backup power plant in Bohol to support an upcoming power supply agreement to commence this 2024. This will allow us to establish an immediate foothold in Visayas as another avenue for growth,” he said.
ACR’s portfolio is composed of four power plants in Mindanao with a total capacity of 468 MW.
ACR, Mindanao’s first private sector power generator providing electricity to over eight million people in 14 cities and 11 provinces in the country’s second largest island, is looking to finance its pipeline of projects through a combination of project and term loans, as well as internally generated funds.
“We have always been open to cooperation and partnerships with potential equity investors from similar industries, as well as other financial institutions and fund managers in our projects, and we will continue to do so in the upcoming years,” Alcantara said.
ACR vice president and chief financial officer Alexander Simon said 2023 is seen to be an even better year for the company.
He said the company’s entry into renewable energy projects would be the main driver of its future growth plans in the long term.
“We continue to have a very optimistic view of the year ahead, especially with the advent of WESM in Mindanao, as well as establishing new and renewed partnership with our customers,” Simon said.
“We project an even higher revenue and profit margins as we continue to realize incremental business from ancillary services and additional utilization of available capacities. 2023 will also usher in the dawn of the company’s first investment in renewable energy,” he said.