Pure Energy eyes 500 MW in 5 years
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by Land Asia Listings
- February 8, 2017
- News
- 0
MANILA, Philippines – Pure Energy Holdings Corp. is eyeing more investments in the renewable energy sector – apart from hydropower ventures – as it looks to have a 500 megawatts (MW) of total capacity in five years, company officials said.
Pure Energy is looking at forming a basket of renewable energy projects such as wind, solar and biomass to expand its portfolio after it lists in the local bourse, company president and chief operating officer Gary Espino said in an interview.“The opportunity to hit 500 MW is not far fetch over a five-year period,” he said.
The company is currently in talks with other developers for possible partnerships, Espino said.
“We’re always prospecting. We’re very opportunistic apart from 153 MW (in the pipeline), we continue to stay in the market and look for other opportunities. Right now, though I cannot discuss them further, (we’re under) exploratory discussions with other parties, also in renewable,” he said.
Incorporated in 2013, the company is working on a total capacity of 153 MW composed of several hydropower projects and one geothermal facility through its subsidiaries Repower Energy Development Corp. and Pure Geothermal Inc.
Pure Energy has filed an application with the Securities and Exchange Commission to sell 930 million common shares – with an option to sell 46.5 million shares more – at P1.62 per piece, looking to raise P1.5 billion.
It is looking to conduct its initial public offering within the first half of the year.
Proceeds will be used for the development of hydropower projects, Pure Energy chief executive officer Dexter Tiu said.
For other renewable energy projects, the company sees viability in investing in solar projects even without the Feed-in Tariff (FIT) scheme due to plunging prices and short-term development it takes to complete, Espino said.
FIT is a set of incentives given to renewable energy developers for 20 years. However, the current administration is not keen on expanding the FIT scheme into another round.
“For solar farms, you can easily build 100-MW facilities because it only takes six months,” he said. “Opportunity for a viable project is very good because solar prices have gone down and they continue to go down.”
The company is also eyeing opportunities in wind projects even without FIT, Repower Energy president and COO Johnson Sanhi said in the same interview.
“Yes, we’re looking into wind even without FIT. We can do PSA (power supply agreements) with a local DU (distribution utility),” he said.
