FGEN eyes new switches, geothermal expansion

Hospitals and commercial buildings are next in line for cleaner power, as Lopez-led First Gen Corp. (FGEN) readies to switch five Luzon customers — including the Mount Grace hospital group — to its Renewable Access Program (RAP) by November, equivalent to nearly 5 megawatts.

“Our pipeline includes about five more customers, mostly commercial buildings, but we also recently signed Mount Grace Hospital. These are small to medium hospitals servicing Manila, and we expect to switch them by November 26,” FGEN chief customer engagement officer Carlo Vega said in an interview with reporters.

Vega said the market is shifting as RAP customers are no longer limited to commercial buildings, with more clients now combining RAP and Corporate Renewable Energy Market sourcing.

ERC issues resolution

The Energy Regulatory Commission facilitated RAP transition through Resolution No. 13, Series of 2024, which introduced new rules allowing metered facilities under the same owner or business category within a franchise area to combine their demand to meet the 500-kilowatt threshold.  

ERC data showed that average retail market prices in 2024 stood at P5.77 per kilowatt-hour, with the lowest price recorded at P3.50 per kilowatt-hour. More entities are expected to transition to the contestable market under the RAP in the coming weeks.  

Separately, Vega said FGEN is targeting 13 gigawatts of capacity by 2030 and is currently under review following its recently signed definitive agreements with Prime Infrastructure Capital Inc.

Vega noted that proceeds from the company’s gas asset sale will be directed mainly to its geothermal portfolio, which he described as a reliable 24/7 renewable energy source. While other technologies remain in the pipeline, geothermal will be the priority. He added that FGEN is also exploring opportunities abroad, beginning with Indonesia.

Despite reducing its exposure to natural gas, the company will retain a 40 percent stake in the business and continue to partner with Prime Infra. 

“We believe the country cannot grow renewable eånergy without growing gas. Gas remains the best transition fuel because it provides flexibility and scale while complementing the development of batteries,” Vega said.