Renewable energy company Alternergy Holdings Corp. is looking for new funding to support its capital expenditures (capex) for the planned capacity expansion of 190 to 200 megawatts.
In a briefing on Thursday, Sept. 26, Alternergy President Gerry Magbanua said that the company is actively exploring options to raise capital to support its planned capacity expansion.
He reiterated that the 191MW development plan is expected to “require around P15 billion of capex.”
He added, “Our nature is really to develop projects. We are developers. Our DNA is that of a developer. So we continue to explore opportunities. But hand in hand with that opportunity, we need to have funding.”
According to Alternergy, about four projects with an aggregate capacity of 225 MW are due for completion next year.
“The 225 MW funding has been locked in already, but the additional 190 or 200 MW, that’s something that we will continue to seek funding for in the next few months,” Magbanua said.
To achieve funding for the 191 MW developments, the Alternergy chief said that the firm must raise around 25 percent as equity in the project cost, while 75 percent will come from loans.
“Once we implement a project, we typically do it on a project finance basis,” he explained.
Aside from future investments, Magbanua announced that the RE firm had set its own record high net income this year, as its consolidated net income was raised to P130 million from P38 million last year.
This was due to a 60 percent surge in revenues of P275 million from Alternergy’s operating assets, like the Palau solar photovoltaic (PV) plus battery energy storage system (BESS) project, which began its operations in January.
“The Palau project posted P87.3 million in revenues for the first six months of operations,” Alternergy stated.
The firm’s 12.5 MWp Kirahon solar power plant has also contributed to a robust performance, as it brought a 10 percent increase in energy generation and was able to yield P188 million in revenues this year compared to P173 million in 2023.
“[We] also saw a surge in other income in 2024 at P88 million from a loss of P33 million, attributed to the project cost recovery from the Palau project and adept cash management, resulting in higher interest income,” the RE company reported.
Furthermore, it was able increase its earnings before interest, taxes, depreciation and amortization (EBITDA) by 72 percent from P180 million to P320 million, while its consolidated assets jumped to P8.7 billion.
Consolidated equity also climbed tfc tfc to P4.3 billion from the private placement of preferred shares.
Because of this, Alterenrgy was able to accelerate developments in the Tanay and Alabat wind power projects, the Solana solar project, the Liberty Aqua-voltaic solar project, and the ongoing construction of the 4.6 MW Dupinga and 7.6 MW Kiangan run-of-river hydro projects.
Vicente Perez Jr., Alternergy chairman said that its triple play portfolio, specifically the solar, wind, and hydro energy helped push the projects to construction within one year.
“Five projects are now under construction with a combined capacity of 242 MW to be added to boost the country’s energy supply by end 2025,” Perez said. “We are confident and committed to pushing forward the 500 MW by 2026 target as set.”