Leyte: First Gen Corporation has reaffirmed its commitment to help meet the growing power demand in Leyte and the rest of Eastern Visayas, saying it is ready to supply additional reliable and affordable electricity from its geothermal facility in Leyte once procurement terms allow its participation.
According to Philippines News Agency, the renewable energy company said it is prepared to offer uncontracted geothermal capacity from the Tongonan Geothermal Power Plant, operated by its renewable energy subsidiary, Energy Development Corporation (EDC), through future competitive bidding or emergency power supply procurement that recognizes the operational requirements of existing renewable energy facilities.
First Gen said it was unable to participate in the 2024 competitive selection process (CSP) conducted by the Federation of Rural Electric Cooperatives in Region 8 (Frecor-8) after revisions to the terms of reference, particularly the cap on operations and maintenance cost components, rendered participation commercially unviable for geothermal power plants.
The company said that while the pricing mechanism may be appropriate for coal-fired power plants, whose fuel costs fluctuate and are passed on to consumers, geothermal facilities operate under a different cost structure.
Although geothermal energy has no fuel cost, it requires continuous investment in steamfield and well maintenance to sustain reliable 24/7 power generation.
"Serving our home region has always been a priority for us," Teodulfo Troyo, head of the EDC Tongonan Geothermal Power Plant at the Leyte First Gen Renewables facility, said in a statement on Monday.
"While changes in the recent bidding framework prevented us from participating, we remain ready to provide our available geothermal capacity once future procurement terms accommodate the operational realities of renewable energy plants like ours.'
First Gen currently supplies electricity to the Leyte II Electric Cooperative (LEYECO II) and Leyte III Electric Cooperative (LEYECO III) through Green Core Geothermal, Inc., which owns and operates the Tongonan Geothermal Power Plant in Leyte and the Palinpinon-1 Geothermal Power Plant in Negros Oriental.
According to the company, these power supply agreements have provided consumers in the franchise areas of the two electric cooperatives with stable and predictable electricity rates over the past 15 years.
First Gen said it is exploring opportunities to extend these benefits to more consumers in Eastern Visayas by offering available geothermal capacity through future long-term competitive bidding or emergency procurement mechanisms.
"We believe the best way forward is through open cooperation," Troyo said.
"We are ready to work with local energy stakeholders and electric cooperatives to develop compliant solutions that will deliver long-term, affordable, and clean energy to consumers in Eastern Visayas."
First Gen is the country's leading renewable energy provider, with more than 1,700 megawatts (MW) of installed generating capacity from geothermal, hydro, wind, and solar power facilities nationwide.
More than 1,300 MW comes from geothermal plants operated by EDC, helping make the Philippines the world's third-largest producer of geothermal energy.
The EDC issued the statement days after the electric cooperatives across Eastern Visayas announced that they will implement higher electricity generation charges for the July 2026 billing period following a significant increase in charges from the Wholesale Electricity Spot Market.
