FPIP now powered by renewables as it joins Retail Aggregation Program

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This is the first time consumers inside an industrial park and pooled their power needs and negotiated for renewable electricity under the government’s customer choice program

MANILA, Philippines – The Lopez family’s First Philippines Industrial Park (FPIP) ecozone in Santo Tomas, Batangas joined the government’s Retail Aggregation Program (RAP) through a landmark agreement with its sister company First Gen Corporation (First Gen).

Under the deal finalized on Monday, July 21, First Gen will supply 21 FPIP facilities inside the ecozone with electricity from renewable energy (RE) power plants.

This is the first time customers inside an industrial park pooled their power needs and negotiated for RE electricity under the RAP.

First Gen and FPIP’s president Giles Puno said the move also aimed to demonstrate RE’s capability of providing cost-efficient electricity.

“We have a diversified renewable energy portfolio and increasing demand for RE from customers to meet their sustainability and decarbonization goals. What we want to do is to demonstrate that it is possible to provide stable and steady RE supply while securing cost-efficient energy,” he said.

Companies that have set up shop in FPIP include Collins Aerospace, Dyson, Canon, Honda, and Nestle.

RAP at a glance

The RAP was launched by the Energy Regulatory Commission in 2022 as part of the government’s Retail Competition and Open Access Program. This allows an electricity user with a monthly consumption of at least 500 kilowatts (kW) to select a preferred power supplier.

The program allows these consumers to enjoy better services at potentially lower power rates.

To qualify for the RAP, FPIP consolidated its power requirements with those of its units FPIP Property Developers & Management Corporation and FPIP Utilities, Incorporated.

These units help the ecozone manage its support services, such as wastewater and sewage treatment as well as water distribution and industrial security.

FPIP then negotiated with First Gen subsidiary First Gen Energy Solutions (FGES) for electricity from the power firm’s hydroelectric power plants in Nueva Ecija.

Outgoing Energy Regulatory Commission Chair Monalisa Dimalanta lauded the deal between the Lopez family’s two firms, describing it as a step closer to democratizing access to competitive power pricing.

“It is especially fitting that First Gen is leading this milestone today as we are now witnessing the birth of the first generation of consumers who will no longer take analog when it comes to power procurement,” she said in a speech.

Impact of Prime Infra acquisition

After Enrique Razon’s Prime Infra acquired 60% of First Gen’s natural gas business, Puno said they are currently awaiting regulatory approvals from the Philippine Competition Commission (PCC).

First Gen expects the deal to be closed within the next three months.

Puno said Prime Infra’s entry will allow First Gen to grow both its natural gas and renewable businesses.

“By bringing in Prime, we now have a partner where both of us will be incentivized, motivated to grow the gas business. Because the gas is important for the transition to complement the entry of renewable energy,” he told reporters in a chance interview.

Puno also hinted at more investments in renewables next year, particularly the installation of new geothermal facilities.

“In geothermal, our plants have been in operation for the last 40 years. So we’re in the process of upgrading some of the other facilities,” he explained. – Rappler.com