Philippine energy companies upbeat as projects go online

Some listed energy companies are bullish for growth this year as power projects that are expected to go online provide additional power supply to the grid.

“The year 2024 was a wake-up call, not only for the energy sector but for the entire country,” Antonio Miguel B. Alcantara, chief executive officer (CEO) at Alsons Power Group, told BusinessWorld in an interview. “The red and yellow alerts experienced across the country underscore the urgent need to enhance the Philippines’ power supply, demand management and transmission reliability.”

Last year, the Philippines’ main grids were placed under 16 red alerts and 62 yellow alerts, leading to brownouts.

“At Alsons Power, we are optimistic that 2025 will be another remarkable year,” Mr. Alcantara said.

The company is set to launch its first large-scale solar power plant as part of its plan to diversify its energy portfolio.

Alsons’ power generation facilities are concentrated in Mindanao. It has four power facilities with a combined capacity of 468 megawatts (MW).

Last year, the company started commercial operations of its first renewable energy project, the 14.5-MW Siguil Hydro Power Plant in Maasim, Sarangani.

“In Mindanao, the Department of Energy noted an adequate power supply outlook for the region,” Mr. Alcantara said. “Nevertheless, there is a pressing need to enhance generation capacity to address the expected growth in energy demand over the coming years, as well as to account for the frequent provision of power to the Visayas.”

Meanwhile, power distributor Manila Electric Co. (Meralco) cited the need to enhance its distribution network’s resilience and smartness through grid modernization projects, storm-hardening program and continued investments in advanced technologies, Executive Vice-President and Chief Operating Officer Ronnie L. Aperocho said.

This includes capital-intensive projects such as smart substations and the rollout of smart meters for Meralco’s eight million customers.

“With an upbeat economic growth forecast for the Philippines for 2025, we are optimistic that this will be mirrored in Meralco’s growth prospects, supported by our strategic efforts to invest, innovate and increase the value of the services that we deliver to our stakeholders, which include our customers and the country,” Mr. Aperocho said.

ACEN Corp., the listed energy unit of Ayala Corp., expects a “better supply situation” this year as large thermal plants start operations, along with new renewable energy plants in the next 12 to 18 months.

“Given the variable nature of renewables, we need to step up efforts to integrate more energy storage into the grid,” Eric T. Francia, president and CEO at ACEN, said in a Viber message.

The company has about 2,400 MW of renewable capacity in the Philippines, about 1,000 MW of which is under construction.

Mr. Francia said ACEN seeks to participate in the government’s green energy auctions and build up capacity to support the company’s retail electricity business.

“We aspire to further scale our renewable capacity in the Philippines by over three times for the balance of the decade,” he said.

Meanwhile, Alternergy Holdings Corp. sees 2024 as a “transformative year” as it managed to raise P20 billion in just 15 months as a listed company. This is expected to fuel the company’s growth and lay the groundwork to achieve its target of 500-MW capacity by 2026.

Last year, the company started building its three projects — Tanay and Alabat Wind Power projects and Balsik Solar Power project. Construction of the Dupinga Run-of-River Power project and the first phase of Kiangan Run-of-River Power project continue.

“We are bullish at Alternergy as we aim for the complete construction of four of our wind, solar and hydro projects by the end of 2025,” Vicente S. Perez, Jr., chairman at Alternergy, said in a Viber message.

The company is gearing up for the next phase of capital-raising to meet the equity needs of its project pipeline.

Energy projects covering 5,485.28 MW are scheduled to start commercial operations in 2025, according to data from Energy department. – Sheldeen Joy Talavera, Reporter