In a bold move to enhance its renewable energy offerings, Lopez-led First Gen Corporation (FGen) has expressed a keen interest in rehabilitating the Agus-Pulangi Hydropower Complex (APHC) located in Mindanao. This initiative aligns with the company’s ongoing efforts to expand its hydropower portfolio and integrate more sustainable energy sources into its operations.
During an impromptu interview in Singapore last week, Jay Soriano, FGen’s vice president and head of strategy and planning, emphasized that the company is open to exploring the viability of a public-private partnership (PPP) concerning the substantial 1,001-megawatt (MW) capacity of the APHC. This complex is a significant asset for Mindanao’s energy landscape, making its potential rehabilitation a critical focus for FGen.
Soriano referenced the company’s prior bids for hydropower projects, including the Casecnan hydropower plant and the Caliraya-Botocan-Kalayaan (CBK) facilities. He highlighted that augmenting its hydropower capacities would complement FGen’s existing renewable energy assets, which include geothermal, solar, and wind sources. As the energy market undergoes transformative changes, the diversification of energy sources becomes essential for stability and efficiency.
Additionally, Soriano pointed out the relevance of the Green Energy Auction Program (GEAP), anticipating a significant increase in renewable energy outputs. “We expect three gigawatts (GW) of wind energy and a similar amount of solar energy in the coming years,” he explained. However, he noted that with the intermittent nature of these renewable technologies, it is imperative to maintain a balanced energy mix. Hydropower, due to its reliability, can serve as an excellent balancing technology in this scenario.
Currently, First Gen possesses a robust geothermal capacity of 1,189.34 MW through its subsidiary, Energy Development Corporation (EDC). The company also manages the 150-MW Burgos wind farm and a smaller 6.8-MW Burgos solar project, both of which are strategically positioned in Ilocos Norte. This portfolio highlights FGen’s commitment to renewable energy and its proactive stance in addressing the energy needs of the Philippines.
FGen’s contemplation of the APHC rehab stems from its intent to not only take part in the bidding process but also aim for an upgrade that enhances the existing infrastructure. PSALM, the state-run entity overseeing the power sector, currently manages APHC and is on the lookout for a concessionaire to facilitate the necessary restoration and retrofitting of the aging facility. The complex currently produces between 600 to 700 MW, and with a private partner, efforts for revamping it are targeted for completion by 2028.
As part of its strategy, PSALM has shown openness to unsolicited proposals regarding the rehabilitation of APHC, with the official bidding process slated to begin in 2026. Soriano remarked, “Regardless of what’s available, we will investigate the Agus-Pulangi rehabilitation. Our goal is to see if there are opportunities to upgrade and enhance the facility.” This forward-thinking approach reflects FGen’s commitment to maximizing energy potentials while ensuring sustainability.
At present, FGen operates three hydropower facilities: the 132-MW Pantabangan-Masiway complex, the 165-MW run-of-river Casecnan plant, and the 1.6-MW Agusan mini hydropower facility. These projects showcase the company’s experience and capability in the hydropower sector, further solidifying its position as a key player in the Philippine energy market.
Previously, FGen had tendered for the CBK hydropower complex through the FWKG consortium, which included a partnership with K-Water Resources Corp. However, the auction for this project was awarded to Aboitiz Power Corp., demonstrating the competitive nature of the renewable energy sector in the region. Despite this setback, FGen’s ongoing interest in APHC signifies its commitment to pursuing strategic partnerships in hydropower and reinforcing its foothold in the renewable energy landscape.