First Gen Seeks New Geothermal Growth As It Upgrades Aging Assets
- October 2, 2026
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First Gen Corp. is looking to expand its geothermal footprint in the Philippines while upgrading existing facilities, as the Lopez-led company calls for market and regulatory reforms to support investments in the country’s indigenous renewable energy resources.
The company has invested more than ₱200 billion in geothermal development through subsidiary Energy Development Corp. (EDC), which operates nearly 67% of the Philippines’ geothermal capacity, First Gen President and Chief Operating Officer Francis Giles B. Puno said.
Puno said geothermal projects require longer development periods than some other renewable energy projects, making stable market and regulatory conditions critical to securing financing and ensuring that electricity generated by new facilities can be sold at viable prices.
“Our market rules do more than determine how electricity is bought and sold today. They help determine what gets built tomorrow,” Puno said during the First Gen Power Economics Forum 2026.
EDC has developed geothermal facilities in Bicol, Leyte, Negros Island, and Mindanao since 1976. It has a total installed geothermal capacity of 1,480.19 megawatts, according to First Gen.
Modernizing Existing Plants
Alongside plans for further resource development, EDC is upgrading its aging geothermal facilities to extract more electricity from existing resources.
The company is rehabilitating the Palinpinon-1 geothermal power plant in Valencia, Negros Oriental, replacing three 37.5-MW turbine generators with three 42-MW units.
The project will raise the facility’s installed capacity by 13.5 MW to 126 MW from 112.5 MW, or an increase of about 12%.
The new turbines are designed to generate more electricity from the same volume of geothermal steam, allowing EDC to increase output without additional steam extraction. The upgrade is also expected to extend the operating life of a facility that has supplied electricity to the Visayas grid for more than four decades.
“This modernization project reflects our commitment to continuous innovation and environmental stewardship,” Noel Tan, head of EDC’s Southern Negros Geothermal Project, said.
The Palinpinon-1 upgrade forms part of First Gen’s thrust of modernizing its renewable energy portfolio as demand grows for dependable, lower-carbon electricity.
EDC’s Southern Negros Geothermal Project has continued operating beyond the typical 25-year lifespan associated with geothermal steamfields. Its combined 222.5-MW capacity avoided more than 1.035 million metric tons of carbon-dioxide equivalent emissions in 2025, according to First Gen.
National Advantage
First Gen has more than 1,700 MW of renewable energy capacity from 31 geothermal, hydro, wind, and solar facilities across the country. Geothermal accounts for more than 1,300 MW of the portfolio.
The Philippines ranks as the world’s third-largest geothermal producer, behind the United States and Indonesia, according to Puno.
He said the country’s advantage lies not only in its geothermal resources but also in the technical expertise developed over decades of operating large-scale facilities.
“Our advantage, therefore, is not simply the resource beneath our feet. It is the knowledge and capability we have built around it,” Puno said.
That expertise is also being brought overseas. Through a partnership with Indonesian conglomerate Sinar Mas, First Gen is bringing Philippine geothermal experience to Indonesia, Puno said.
Reforms Sought
Puno said the company sees further geothermal development as part of its renewable energy strategy, but stressed that new projects will depend on infrastructure, regulation, and market conditions that provide sufficient certainty for investors.
He pointed to proposed amendments to the Electric Power Industry Reform Act and the expansion of retail competition and open access as areas where policy changes could influence future investment.
He said targeted reforms could encourage investment in indigenous renewable energy, strengthen competition and give consumers greater choice in selecting electricity suppliers.
“If we can combine our geothermal resources and expertise with the right infrastructure, regulation, and market design, geothermal can become more than another source of renewable electricity,” Puno said. “It can become a strategic national asset—strengthening our energy security, supporting decarbonization, and building a Philippine capability with value well beyond our shores.”
The company said geothermal power can provide a steady source of renewable electricity that complements variable generation from solar and wind.
Puno said government agencies, regulators, system operators, developers and investors would need to coordinate to turn the country’s geothermal resources and accumulated expertise into a longer-term economic and energy advantage.
Source:
https://manilastandard.net/business/314796984/first-gen-urges-reforms-to-boost-ph-geothermal.html
