Alternergy creates retail power unit, reports 26% income growth

Alternergy Holdings Corp. said Thursday it received an approval from the Securities and Exchange Commission (SEC) to establish ALTER Power RES Inc., a new subsidiary focused on supplying renewable and sustainable power to the competitive retail electricity market.

The move is part of Alternergy’s expansion strategy to become a “supplier of choice by end-users that place considerable value to sustainability,” said Gerry Magbanua, president of Alternergy and ALTER Power.

Magbanua said the retail electricity market has been growing steadily, with demand reaching about 6,500 megawatts as of August 2025, representing about 45 percent of the country’s total system peak demand. He said that the current market is dominated by vertically integrated companies involved in generation, distribution and supply.

“With ALTER Power, we hope to create and stimulate greater competition and supplier diversity in the retail electricity market,” Magbanua said.

Following the SEC approval, ALTER Power will register with the Energy Regulatory Commission (ERC) for a license as a retail electricity supplier (RES).

Alternergy posted a 26-percent increase in net income for the first quarter of its fiscal year 2026 (July 2025 to June 2026) to P22 million.

This was led by the stable performance of Kirahon Solar. The growth was achieved despite lower-than-expected operating revenues from the Palau Solar PV plus Battery Energy Storage System which was affected by reduced solar irradiation.

“ALTER continues to exercise strict financial management as we await the start of commercial operations of our projects that would bring steady revenue generation,” said chief finance officer Carmen Diaz.

ALTER’s consolidated assets grew by 9 percent to P19.4 billion as of September 2025. Significant investments for construction of wind and solar projects, amounting to almost P4 billion, were recorded during the period.

Despite these capital expenditures, Alternergy maintained a strong cash position of P4 billion. Retained earnings stood at P134 million even after a P39-million dividend payout to common shareholders in September 2025.

Consolidated earnings before interest taxes depreciation and amortization (EBITDA) increased by 17 percent to P89 million from P76 million in fiscal year 2025.

Diaz noted the company’s focus on completing construction projects. “We have started the testing and commissioning of our Hermosa Solar Power Project and is expected to be in commercial operations very soon. We are almost complete in the construction of our Dupinga Run-of-River Power Project while the Tanay and Alabat Wind Power Projects have started installation of the first wind turbines,” Diaz said.

“It is only a matter of time now, these projects are expected to boost ALTER’s financial standing,” she said.