RE firm Alternergy posts 1st 3-digit net income growth

Manila: Alternergy Holdings Corp., a pioneer in renewable energy in the country, recorded its first triple-digit growth in consolidated net income for the fiscal year (FY) 2024.

In a press briefing in Makati City Thursday, Alternergy president Gerry Magbanua said aside from recording its triple-digit growth, FY 2024 ending June 30, 2024 is a banner year for the company as it posted a record-high net income of PHP130 million.

Alternergy’s net income in FY 2024 is 239 percent higher than the PHP38 million net income in FY 2023.

FY 2024 has been Alternergy’s second consecutive year to post a positive net income following a loss of PHP145 million in FY 2022.

Alternergy chief financial officer Carmen Diaz said the listed firm had a robust performance for FY 2024 as revenue rose 60 percent to PHP275 million from PHP171 million in the previous fiscal year.

Diaz said the operations of its solar power and battery energy storage system project in Palau, which went online in January 2024 ‘contributed significantly’
to the company.

She said the 12.5 megawatt peak and the steady performance of Kirahon solar power plant in Misamis Oriental continued to support the growth of Alternergy’s financial performance.

500MW goal on track

Magbanua said Alternergy is on track of its goal to put up 500 MW of clean energy projects in two years.

‘Over the period of time that means our generation capacity will increase from 86 to 500 megawatts, so that’s a fivefold increase in our footprint in terms of actual capacity to be built on the ground,’ he said.

To date, the RE firm is building four projects with a total capacity of 225 MW going to be online by 2025 and another 191 MW by 2026.

The wind power projects in Tanay and Alabat Island with a capacity of 86 and 55 MW, respectively, are part of the projects that will be operational next year.

Magbanua said the PHP18-billion capital expenditure for these projects are already secured, ensuring the on-time implementation of the projects.

Going off-grid

Given that RE is an efficient
source of electricity in off-grid areas, Magbanua said Alternergy is open to bringing its RE technologies in remote areas in the country once a proper regulatory environment is in place.

‘I know that NPC-SPUG (National Power Corp.-Small Power Utilities Group) has been reviewing their business model and wanted to transition away from the existing model where they basically fund and generate electricity from diesel in the SPUG areas,’ he said.

‘So we’re in discussions, you know, we’re being consulted, we follow up with, we follow them in their quest for transitioning that business model into something that RE can support,’ he added.

Magbanua said RE powering off-grid areas is a low-hanging fruit, especially in this time when prices of batteries are ‘coming down significantly.’

‘We would like to have a proper structure in terms of the regulatory environment, on how the commercial arrangement will be put in place. At the moment it’s solely dependent on the NPC’s part. So we would wait to see how they’re going
to address that and how the PSAs (power supply agreements), the off-takes will be structured,’ he said.

Source: Philippines News agency