Repower Energy Development Corp. expects net income to reach P300 million in 2023, up 78 percent from P168 million last year.
Revenues climbed to P382 million in 2022 from P233 million in 2021, reflecting a strong momentum in terms of financial performance.
REDC said one of the factors leading to the company’s strong financial performance is the favorable regulatory regime under the feed-in-tariff program—a policy designed to provide a guaranteed fixed rate for renewable energy investors.
“If the government can support us with more financial capabilities to achieve financial closure for the projects, that would help a lot,” REDC president Eric Peter Roxas said in an interview with ANC’s Market Edge.
The company is pursuing an initial public offering of 200 million primary common shares, with an over-allotment option for another 30 million secondary shares. The shares will be sold at P5 apiece.
REDC intends to use the proceeds for its expansion plans such as partially funding the equity portion of Pulanai mini hydro power project and Piapi mini-hydro project in Bukidnon and Quezon provinces, respectively and acquiring other renewable energy projects.
REDC has six operating power plants in Laguna, Quezon and Camarines Sur.
Two more power plants will come online by June 2023, increasing the company’s operational capacity by over 60 percent.
The company set its sights on “growing another 1,000 megawatts in its portfolio, concentrated on hydropower projects, possibly upstream and downstream of existing power plants and seawater pump storage” in the next five years.
Roxas said hydropower is one of the most efficient types of renewable energy.
“Our hydropower plants, which we were operating for the past seven years, have a capacity factor [efficiency] of around 72 percent. We have a very high plant factor and good hydrology. We’re very happy with the performance of the power plants,” he said.
Roxas said this is higher compared to solar power plants whose efficiency is around 12.7 percent, while wind power plants have an efficiency of around 33 percent.
He said that with more efficient power plants, REDC’s hydropower plants could offer cheaper electricity to consumers.
“For example, the wholesale market is doing P8 to P9 because of the high oil prices. We are stable at around P5.87. Solar [is around] P8 to P9 per kilowatt-hour,” Roxas said.
Roxas also said that while hydropower plants require a lot of capital for construction, the returns on investment could be massive for their bottomline, and recurring income could last up to 100 years or more.
“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.