ALTERNERGY Holdings Corp. has partnered with an electric cooperative in Quezon to facilitate the delivery of power from its planned 55-megawatt (MW) wind farm in the province to the electricity grid.
In a stock exchange disclosure on Wednesday, the listed energy company said its unit Alabat Wind Power Corp. (AWPC) had signed a memorandum of agreement (MoA) with Quezon 1 Electric Cooperative, Inc. or Quezelco 1.
AWPC President Knud Hedeager described the cooperation with the power distribution utility as “very crucial” to ensure that the renewable supply from the Alabat wind farm project is delivered within the committed timeline.
The delivery timeline is called for under the second round of the government’s green energy auction program, a competitive process of procuring renewable energy supply by offering capacities to qualified bidders at a set maximum price.
As stipulated in the MoA, AWPC will construct and commission a 37-kilometer, 69-kilovolt transmission line from the wind farm to the Hondugua substation of National Grid Corp. of the Philippines.
Quezelco 1 will construct a 10-megavolt-ampere substation and assist in securing the right-of-way for the proposed transmission line to be built.
Alternergy, on the other hand, will assist in securing financing for the proposed substation.
Mr. Hedeager said the group is “working at a very tight timeline and are very delighted” by the support from the electric cooperative and the local government of Quezon “to ensure that we achieve this.”
In a separate disclosure, Alternergy said it had tapped K2 Management A/S (K2M) of Denmark, an independent wind and solar project management and consultancy firm, as the “owner’s engineer” of its two projects.
The two entities executed the owner’s engineer contract following a competitive selection process.
K2M will facilitate the development and construction of two onshore wind power projects — the 86-MW Tanay wind farm in Rizal and the Alabat wind farm.
The company will support Alternergy in the procurement processes within a multi-contracting arrangement, followed by construction management, design reviews, site management, and quality control measures.
“We look forward to working with K2M as we seek to ensure that this momentum continues. Leveraging insights from an independent advisor, whose expertise has come from established markets globally, was the natural choice for us as we aim to deliver clean and sustainable power,” Mr. Hedeager said.
For the fiscal year ending June 2023, Alternergy registered a consolidated net income of P38 million, reversing its P145.2 million net loss a year earlier.
Alternergy is targeting to develop up to 1,370 MW of renewable energy sources such as onshore and offshore wind, solar, and run-of-river hydropower.
At the local bourse on Wednesday, shares of the company closed unchanged at P0.76 apiece. — Sheldeen Joy Talavera