Alternergy went 3-for-3 in DoE’s Green Energy Auction

Alternergy [ALTER 1.04 0.9%; 55% avgVol] [link], the renewable energy company owned by Vince Perez, said that it won all three of the projects that it bid on during the Green Energy Auction 2 (GEA 2)  event held by the Department of Energy (DoE) on July 3. The three projects have a combined capacity of 200 megawatts, and will bring ALTER’s installed capacity up from 84 MW to 384 MW in three years’ time.

Of the three projects, the 50MW Alabat wind project was mentioned in ALTER’s prospectus as part of its pipeline, but it was moved up by a year so that they could build it and the 86 MW Tanay wind farm simultaneously and take advantage of the cost efficiencies of doing it that way. The 67 MW Liberty Solar project, which was also one of the projects “won” during this auction, was not a part of the IPO prospectus.

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The ability to bid on and win projects at auction is crucial for a renewable energy company, and ALTER is quickly proving that it is a capable “hunter”.

The renewable energy sector is hot because the government has signaled to the business sector that there will be plenty of opportunities, both now and in the future, and these regular auctions are a big part of the process for how these opportunities are identified and distributed. ALTER has a history of operating successful projects, it’s run by a team with impeccable regulatory knowledge and experience, and now it’s showing us a willingness to accelerate its own plans and fight for stuff that wasn’t even a part of the prospectus to begin with.

I haven’t worked through the due diligence to get a feel for how these new projects could impact ALTER’s financials in the years to come, but as an equity investor, these are the kinds of things that would start to get me to take notice. They’re making moves that could be great for topline revenue growth. 

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Merkado Barkada’s opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.