Wednesday, June 21, 2017

First Gen eyes sale of 200 MW in retail market



By Danessa Rivera (The Philippine Star) | Updated May 16, 2017 - 12:00am

MANILA, Philippines - Lopez-led First Gen Corp. is eyeing to market 200 megawatts (MW) of clean energy from its 414-MW San Gabriel power plant in Batangas to utilities and industrial customers under the retail competition and open access (RCOA) regime.
First Gen is working on closing contracts with utilities and industrial users this year to give the company predictability in terms of revenues, company president and COO Francis Giles Puno said.
“That’s what we’re trying to achieve, predictability,” he said. “The impact is minimal compared to what we think as merchant. But what it will do is the predictability so that in the first quarter numbers, we won’t have that seasonality of our financials, so that the revenue stream will be predictable,” he said.
Currently, San Gabriel is merchant plant, which is selling output to the Wholesale Electricity Spot Market (WESM), the country’s electricity spot market. A merchant plant means it has no power supply contracts with distribution utilities.
San Gabriel will not only offer competitive prices to retail electricity customers but also clean energy, First Gen chairman and CEO Federico Lopez said.
The company will retail clean energy capacity through wholly-owned subsidiary First Gen Energy Solutions Inc. (FGES).
Last year, it has signed up nine customers: RFM Corp., Central Luzon State University, Specialty Pulp Manufacturing Inc., Hoc Po Feeds Corp., Green Era Bio-Tech Corp., Analog Devises, Unilever Philippines Inc., De La Salle University Dasmarinas, and De La Salle Health Sciences Institute.

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