First Gen, Ceneco forge power supply deal

LOPEZ-LED First Gen Corp. said it had signed an agreement to supply power to Central Negros Electric Cooperative (Ceneco) for 10 years.

In a media release on Thursday, the company said its subsidiary Energy Development Corp. (EDC) will provide an additional 20 megawatts (MW) for Ceneco’s baseload power supply requirement starting by the fourth quarter.

First Gen Vice-President Carlos Lorenzo L. Vega said the company’s relationship with Ceneco “is one that has been strengthened over time by mutual respect and trust.”

“We’ve shared so much and weathered through many storms — literally and figuratively. And we’re still here trying to do something good for our stakeholders. And now more than ever, I feel like our relationship in terms of value is highlighted,” he said.

According to the company, it has been supplying power to the cooperative at a contracted demand of 20 MW since 2011. The new contract brings the total demand for renewable energy supply to 40 MW.

In June, EDC announced its plan to drill two new exploration areas next year in a bid to expand its geothermal power generation capacity.

First Gen has said that it is targeting to grow its renewable energy portfolio to up to 13 gigawatts (GW) by 2030 from the current capacity of more than 3.4 GW.

At the local bourse on Thursday, shares of First Gen dropped by P0.54 or 2.82% to close at P18.62 apiece. — Sheldeen Joy Talavera