First Gen to register 92% contracted capacity in 2018

LOPEZ-LED First Gen Corp. intends to register a 92-percent contracted capacity this year, up from the current 80 percent.

In its 2017 earnings presentation filed with the Philippine Stock Exchange, the power firm said it “aims to get 92 percent of its capacity contracted” this year.

The power portfolio of First Gen consists of gas, geothermal, wind, hydro and solar-power facilities spread across the country.

The gas plants are the 1,000 megawatt (MW) Santa Rita, the 500-MW San Lorenzo, 97-MW Avion peaking and 414-MW San Gabriel.

Its subsidiary, Energy Development Corp. (EDC), owns and operates 12 integrated geothermal-power stations across Leyte, Bicol, the Negros Island and North Cotabato. It also owns and operates wind and solar farms in Burgos, Ilocos Norte.

Another subsidiary, FG Hydro, owns and operates the 132-MW Pantabangan-Masiway hydroelectric power plant complex in Nueva Ecija.

First Gen recently signed  a power-supply agreement with the Manila Electric Co. (Meralco). The agreement, pending for approval before the Energy Regulatory Commission (ERC), said First Gen will supply Meralco 414 MW of power capacity for P3.77 per kilowatt hour.

Power will be sourced from the 414-MW San Gabriel combined cycle natural gas-fired power plant. The term of the PSA is six years, or until February 23, 2024,  using gas from the Malampaya field, but, in the event that liquefied natural gas (LNG) becomes available, the term of the PSA could be extended upon mutual agreement with Meralco.

In 2017 First Gen generated approximately 21 percent, or 19,808 gigawatt hours, of the country’s requirement across different load segments using clean and renewable energy.

First Gen President Francis Giles Puno earlier said, 2018 is already off to a good start as the San Gabriel contract with Meralco has already been signed, while the ERC provisionally approved FG Hydro’s ancillary-service contract.

“San Gabriel and Avion have been running at high dispatch levels and benefitting from higher electricity prices at the WholeSale Electricity Spot Market [WESM] as a number of older baseload plants are going through maintenance in preparation for the hot summer months. Moreover, EDC’s Leyte projects are on their way to a full recovery,” Puno said.

The company is also looking to participate in the government’s plan to make the country a trading and trans-shipment hub through the development of a LNG terminal which is estimated to cost $1 billion.

The project awaits a final investment decision by 2019. Meantime, it has completed the front-end engineering design, early site works and shortlisted EPC (engineering, procurement, construction) contract tenderer.

“First Gen is also progressing with the site preparation of its LNG regasification terminal to be located in its First Gen Clean Energy Complex in Batangas. The LNG facility will ensure the continued supply of natural gas for all of its gas-fired power plants,” Puno said.