First Gen, EDC sign up more RE switchers

MANILA, Philippines — Lopez power firms First Gen Corp. and Energy Development Corp. (EDC) have switched large power users to 100 percent renewable energy (RE) as part of the first wave of switchers under the government’s Green Energy Option Program (GEOP).

First Gen-EDC said they had the most number of GEOP switchers for the first batch, with 11 out 17 facilities signing up to avail of the program that allows them to lower their carbon footprint.

Among the first batch of GEOP switchers are Asahi Electrical Manufacturing Corp., Bulacan HJR International, Engtek Philippines, Goldilocks Bakeshop group of companies, HJR International, Mary Grace Cafe (Bluemantle Industries Inc.), Puratos Manufacturing, Puresteel Manufacturing, The Linden Suite and TMC International Corp.

The GEOP switchers’ facilities now get a stable supply of clean power from First Gen-EDC’s geothermal facilities.

Considered as the Holy Grail among RE technologies, geothermal energy provides uninterrupted baseload power rain or shine, all year round or what the leading RE firm refers to as Geo 24/7.

Being powered by Geo 24/7 will enable them to avoid a minimum of 0.61 tons of carbon dioxide per 100 kilowatts (kW) in lieu of coal each year.

“GEOP empowers businesses by giving them this opportunity to take a strong stand for the environment and future-proof their operations as they become a part of the solution to our warming climate,” EDC market planning and contracts team head Gideon Red Butalid said.

Through GEOP, companies with an average peak demand of at least 100 kW for the past 12 months can directly source their electricity from licensed providers.

This means that any company in the country that meets the average peak demand requirement can now choose which RE supplier they want to partner with depending on their budget and electricity supply requirements.

Apart from being able to lower their carbon footprint, GEOP customers may enjoy more affordable electricity rates that mainly come from having zero VAT on generation charges and fixed rates that are not indexed on our foreign exchange since power is sourced from indigenous renewable energy sources.

This is definitely a major factor for making the switch, as coal prices continue to soar due to the ongoing war in Ukraine and also due to the peso’s depreciation against the US dollar.

The companies’ GEOP switch is timely after the Intergovernmental Panel on Climate Change (IPCC) warned that any delay in dramatically cutting down our carbon emissions to address climate change results in more dire consequences.

Based on the third part of the Intergovernmental Panel on Climate Change’s (IPCC) Sixth Assessment Report (AR6), urgent action is needed to transition to a low carbon economy in order to limit global warming to 1.5 degrees Celsius by 2100 in line with the Paris Agreement.

The report confirmed that immediate and deep cuts in emissions, combined with systemic, transformative actions across all sectors are key towards achieving an inclusive, resilient, and sustainable economic recovery.

First Gen-EDC has over 1,480 megawatts (MW) total installed capacity that accounts for 20 percent of the country’s total installed RE capacity.

Meanwhile, the 1,181-MW geothermal portfolio accounts for 62 percent of the country’s total installed geothermal capacity and has put the Philippines on the map as the third largest geothermal producer in the world.