Philippine giant First Gen Corp., led by the Lopez family, is making a massive push towards clean energy. The company plans to nearly quadruple its renewable energy capacity to 13 gigawatts by 2030, a move that aligns with the government’s goal of a greener energy mix.
This ambitious project comes with a hefty price tag of $9 billion. First Gen intends to raise the funds through various means, including loans, joint ventures, and potential share offerings. The investment reflects the growing demand for renewable energy in the Philippines and globally, driven by the fight against climate change.
“The electricity needs will be great,” said tycoon Federico Lopez during the company’s annual shareholder meeting. He pointed towards the country’s net-zero goals and the increasing popularity of electric vehicles as key factors.
This initiative follows the Lopez family’s strategic shift in the power generation sector. After selling their stake in Manila Electric Co. a decade ago, First Gen has been actively building its renewable energy portfolio.
To achieve its ambitious target, First Gen needs to expand its current 3.6 gigawatt capacity fourfold. “We need to be four times bigger to stay relevant in 2030,” said company president Giles Puno.
While acknowledging the ambitious nature of the 13-gigawatt target, Puno emphasized their readiness to invest when suitable opportunities arise. He estimates that by 2030, First Gen will account for a significant 24% of the country’s projected 55-gigawatt installed capacity, a major leap from their 13% share in 2020.
The company plans to achieve its target capacity through a mix of renewable and gas-fired power plants. Out of the planned 9.5-gigawatt increase by 2030, 7.5 gigawatts will come from clean energy sources like hydro, solar, geothermal, and wind.
Federico Lopez highlighted the crucial role of clean energy beyond just meeting the Philippines’ domestic power needs. “The global push for cutting emissions is undeniable,” he said. “The transition to net zero is inevitable, and the Philippines needs to be part of the solution.”
This move by First Gen signifies a significant step towards a greener future for the Philippines. The company’s $9 billion investment demonstrates a strong commitment to clean energy and positions them as a leader in the country’s renewable energy revolution.
