Repower Energy targets to build additional 1 GW
REPOWER ENERGY Development Corp. is planning to expand its installed energy capacity by 1 gigawatt (GW) in the next five years, with its portfolio mainly focused on hydropower projects.
Eric Peter Y. Roxas, president of Repower Energy, said the company’s hydropower plants have been operating for the past seven years and have an efficiency capacity factor of around 72%.
“We have a very high plant factor and good hydrology. We’re very happy with the performance of the power plants,” he said in a media release on Monday.
Mr. Roxas said that compared to other technologies, such as solar and wind, hydropower offers way higher efficiency compared with solar at 12.7% and wind at 33%.
The company said it is setting its sights on growing its capacity by another 1,000 megawatts and concentrating on hydropower projects, “possibly upstream and downstream of existing power plants.” It is also considering seawater pumped storage.
Mr. Roxas noted that while hydropower plants require huge capital investments for construction, the return on investments can be huge and recurring income can extend beyond 100 years.
“There’s a lot of nature involved [like] passing through mountains [and] building headrace canals. It’s not for the faint of heart. But once you build it, the continuous flow of the rivers will keep it running for the next 25 to 50 years,” he said.
To date, Repower Energy has six operating power plants in Laguna, Quezon, and Camarines Sur provinces. Two more power plants are expected to come online by June this year which will increase the company’s operational capacity by more than 60%.
Meanwhile, Mr. Roxas is optimistic about the company’s performance in 2023, projecting the company’s net income to reach P300 million this year from P168 million last year.
The energy company, which is a subsidiary of Pure Energy Holdings Corp., is looking to raise about P1.5 billion through an initial public offering (IPO).
Repower Energy secured clearance from the Philippine Stock Exchange on May 15 for its IPO plan. It is set to offer 200-million primary common shares at a maximum offer price of P5 apiece, with an over-allotment option of up to 30 million shares.
The company said proceeds from the IPO will fund expansion plans, including its mini hydroelectric power plants in Pulanai, Bukidnon, and Piapi, Quezon, as well as the development of its other renewable energy projects. — Ashley Erika O. Jose