LOPEZ-LED First Gen Corp. expects to spend around $20 billion over the next five years to expand its power portfolio to 13 gigawatts (GW) within and outside the Philippines.
First Gen President and Chief Executive Officer Francis Giles B. Puno said the company is banking on renewable energy initiatives to drive growth.
“Part of (the 13-GW goal) is really growing of geothermal, solar, and hydro,” Mr. Puno told reporters last week.
The company currently has a total generating capacity of 3,688 megawatts (MW) from geothermal, wind, hydropower, solar, and natural gas plants.
First Gen, known as a leading geothermal producer through subsidiary Energy Development Corp., is hoping to start drilling for its Amacan geothermal project in Mindanao next month.
“We’re hoping to generate at least 70 to 100 MW,” Mr. Puno said.
Outside the Philippines, the company is planning to expand in Indonesia by developing up to 600 MW of geothermal capacity. The Philippines has 1,952 MW of geothermal capacity, making it the third-largest producer after Indonesia.
First Gen is also aiming to scale up its solar and hydropower initiatives as part of its growth plan.
Mr. Puno said the company is also working with Razon-led Prime Infrastructure Capital, Inc. to expand its natural gas business. Prime Infra is acquiring a 60% equity stake in First Gen’s gas portfolio for P50 billion, which covers five power plants and an interim offshore liquefied natural gas terminal.
While there is momentum toward its target, Mr. Puno said achieving 13 GW by 2030 remains challenging due to the long development timelines of power projects.
“The reason why we came up with the 13 GW is to align with the pronouncement of the government on how much capacity is needed,” he said.
Under the Power Development Plan 2023-2050, the country’s total peak demand is projected to rise from 16,596 MW in 2022 to 68,483 MW in 2050. — Sheldeen Joy Talavera
