By Ashley Erika O. Jose, Reporter
GERRY P. MAGBANUA, the president and co-founder of Alternergy Holdings Corp., which he co-founded nearly two decades ago, is hoping to advance the company’s role in supporting the country’s sustainability goals.
With 30 years of experience in the power sector, Mr. Magbanua, who began his career as an auditor for coal-powered companies, initially struggled to find his footing in the renewable energy (RE) sector.
“I have been with the power sector in the last 30 years. I used to be an auditor and most of my clients were all coal-powered companies. That is the beginning of my exposure to power,” he said in an interview with BusinessWorld.
Mr. Magbanua also spent at least nine years working with Intergen, a global power developer, the company behind the 460-megawatt (MW) coal power plant in Mauban, Quezon.
Founded in 2007 by former Energy Secretary Vicente S. Pérez, Jr., Alternergy was established when the renewable energy sector was still emerging in the Philippines, before the Renewable Energy Law of 2008.
“As a pioneering person, I thought that I was already familiar with the power industry and then now with the new sector, which is the renewable energy, I thought that it was also a good opportunity to now be focusing on a specific sector so I then decided to take a leap and move on with and join in forming Alternergy,” he said.
In 2007, Mr. Magbanua said the company was meant to focus on harnessing power from three technologies such as wind, hydro, and solar, which Alternergy branded as its triple-play portfolio.
“I think we are pretty much in it in terms of where we envision the company would be focusing. I’d say that we are essentially pursuing what we’ve set out to do in the beginning. There have been a lot of challenges along the way but we are staying the course,” he said.
BRINGING RENEWABLES OUTSIDE THE BOARDROOM
Aside from the goals the company has set out, Mr. Magbanua has also established some personal goals of embodying sustainability outside the company to power his off-grid farm in Tayabas, Quezon.
“I have installed 9,000 kilowatts for my farm in an off-grid area. For us to be able to have electricity, we have to be reliant on our resources. So, what better way to use the resource than the sun, we have abundant sun,” he said.
Mr. Magbanua said he started farming at the onset of the pandemic to address food shortages while also helping provide employment.
In the energy sector, solar power and agriculture have been integrated through a concept called agro-solar. This approach is new in the Philippines, with few companies exploring it.
With his interest in farming and renewables, integrating the concept to the company’s portfolio has already been considered, Mr. Magbanua said.
Agro-solar is co-locating of solar power generation and crop farming on the same land allowing crops to grow below or beside solar panels.
“We know that solar and agriculture do not necessarily have to be exclusive, they can be combined. There is nothing yet that is final or in the works but that is something that is always in the back of our minds. I’m already familiar with both. It is just a matter of putting them together,” he said.
NAVIGATING UNCHARTED RE SPACE FOR GROWTH
The company is now looking at expanding its projects further as it plans to develop an aquavoltaic project by building solar projects on top of a fish pond, Mr. Magbanua said, describing the initiative as a first of its kind in the Philippines.
Aquavoltaic projects are the development of solar panels atop fish ponds without compromising valuable agricultural land while also ensuring food security.
This provides fish farmers with economic opportunities by increasing fish farm productivity while also helping to promote sustainable energy.
“We hope we can begin the construction of that project by sometime in 2025 already,” Mr. Magbanua said, noting that construction would take about a year.
The planned project will have a capacity of 80 MW and will be located in Tarlac, he said, adding that for now the project will be solely taken by Alternergy.
“At the moment it is just Alternergy but we are not discounting the possibility of being in partnership with anyone,” he noted.
Currently, the energy company seeks to develop up to 1,370 MW of renewable energy sources such as onshore and offshore wind, solar, and run-of-river hydropower projects.
For the next three years, the company aims to develop up to 474 MW of additional wind, solar, and run-of-river hydropower projects.
“Like anything else, we usually ride along with where the industry is headed. I would say that I am very bullish on the RE industry,” he said.
Mr. Magbanua said the company plans to take advantage of the government’s firm stand towards renewables, citing the Philippines target of 35% share of renewables by 2030 and 50% by 2040.
“That to us signals a clear target, and it’s up to us. That’s how we take advantage of that because, obviously, there’s a lot of opportunities to be made,” he said.
“Things happen the way they are, it is just a matter of taking advantage, of taking opportunities. In the beginning, we were preparing, trying to just lay down the foundation for this industry. Things will be very fast for us, we’re all geared up, fired up to take advantage of that.”
