First Gen investing over P1 billion for first large-scale solar farm

MANILA, Philippines — First Gen Corp. of the Lopez Group is setting aside over P1 billion for the construction of the first large-scale solar farm in its portfolio.

“In 2025, we will be breaking ground on a 50-megawatt solar facility in Batangas, with another 100 MW on the horizon,” First Gen president and COO Francis Giles Puno said, referring to the Inara project.

The 150-MW solar facility, Puno said, is expected to reinforce the clean energy supply in Batangas and power the First Philippine Industrial Park, a 520-hectare ecozone with over 150 locators.

First Gen chief finance officer Emmanuel Antonio Singson said the company is planning to spend around “$20 million (about P1.11 billion) to $25 million (about P1.39 billion)” for the project.

The development of the Inara project aligns with First Gen’s strategy to scale up investments in solar and wind projects, complementing its geothermal portfolio.

Puno said First Gen is currently accelerating feasibility studies to push through with its wind projects, with plans to expand in Ilocos Norte and other areas in the country.

“We have to increase our investments in solar and wind just to be at the same level of electricity production as a geothermal plant,” he said.

First Gen is the country’s largest producer of renewable energy, with a total capacity of over 1,600 MW. Notably, about 1,200 MW of its total clean energy capacity comes from geothermal facilities.

“Our focus has been more on geothermal because the geothermal (plants) can run baseload. So it produces more kilowatt-hours every hour,” Puno said.

Geothermal energy is a clean source of baseload supply, or the minimum amount of electricity needed on the power grid to meet constant demand.

For 2025, First Gen has programmed around $601 million for capital spending, with the bulk earmarked for its geothermal business.