First Gen Corp Expands Renewable Energy Initiatives to Reach 13 GW by 2030

First Gen Corporation, a prominent player in the renewable energy sector under the Lopez Group, is setting its sights on an ambitious target of 13 gigawatts (GW) of generation capacity by 2030. This goal aligns with the Philippines' broader energy initiatives, as articulated by company president and COO, Francis Giles Puno. To achieve this, First Gen is focusing on expanding its geothermal, solar, and hydroelectric resources while also exploring acquisition opportunities both domestically and internationally.

In Indonesia, First Gen anticipates developing 500 to 600 megawatts of geothermal capacity, an area where it possesses significant expertise. Within the Philippines, smaller geothermal projects are also on the horizon, particularly in Davao de Oro, where drilling is expected to commence soon, potentially yielding 70 to 100 megawatts.

The company’s solar initiatives are poised for growth as well. Puno noted that while scaling solar projects could prove easier due to declining costs, the initial phase will concentrate on developing 50 megawatts, with plans for replication thereafter. Hydro expansion is also part of the strategy, further diversifying First Gen's energy portfolio.

In collaboration with Prime Infrastructure Capital Inc., First Gen is eyeing the expansion of its gas segment, specifically through the development of the Santa Maria gas plant, which has a proposed capacity of 1,200 megawatts. This multifaceted approach reflects an understanding of the complexities involved in transitioning to renewable energy, especially given the long development timelines and inherent challenges associated with renewable resources.

Puno candidly acknowledged the difficulties of reaching the 13 GW target, citing the lengthy development processes and the limitations of current renewable technologies. The company is set to invest approximately $20 billion over the next five years to bolster its power generation capabilities, a significant commitment aimed at ensuring reliability and sustainability.

First Gen's current generating capacity stands at 3,688 megawatts, derived from various energy sources including geothermal, wind, hydropower, solar, and natural gas. With the Philippines ranked as the third-largest geothermal producer globally, First Gen is poised to leverage its leadership in this sector, particularly through its subsidiary, Energy Development Corporation, which is gearing up to initiate exploratory drilling in the Amacan geothermal field.

As part of First Gen's broader strategy to meet the escalating energy demands outlined in the government's power development plan, the company is keen to capitalize on the potential of geothermal resources, which are critical for providing a reliable baseload capacity. Puno emphasized the importance of this focus, given the burgeoning demand for energy projected to rise significantly in the coming decades.

The company’s commitment to renewable energy expansion, particularly in geothermal, solar, and hydro sectors, illustrates a forward-thinking approach to tackling the challenges of energy sustainability while aligning with national energy targets.