Our hydro platform serves as a sustainable, cost-efficient, and clean energy source. We strive to build all our hydropower assets without compromising the environment. Apart from developing additional hydropower plants down the pipeline, we are also developing the market for pending run-of-river projects in Mindanao.
First Gen’s hydro platform is comprised of three hydroelectric power plants:
• The 1.6-MW Agusan run-of-river (ROR) power plant (Agusan),
• The 120-MW Pantabangan, and
• The 12-MW Masiway cascading plants.
The latter two plants comprise the 132-MW Pantabangan-Masiway Hydroelectric Power Plants (Pantabangan-Masiway).
The Agusan plant is operated by FG Bukidnon Power Corporation (FG Bukidnon), whereas Pantabangan- Masiway is a multipurpose hydro complex owned and managed by First Gen Hydro Power Corporation (FG Hydro).Through the cascading hydroelectric system, water resource from the three-billion cubic meter Pantabangan reservoir cascades through the two 60-MW turbine- generators of the Pantabangan plant upstream, and then through the 12-MW Masiway plant downstream.
FG Hydro sells its generated electricity to various customers under PSAs. It also provides ancillary services to the grid through an ASPA with the National Grid Corporation of the Philippines (NGCP). Electricity generated in excess of the PSA volume contracted is sold to the WESM. The Agusan plant sells all electricity output from its mini-hydro plant to the Cagayan Electric Power and Light Company Inc., through a PSA effective until March 2025.
“FG Hydro’s revenues amounted to PHP 1.9 billion in 2018 compared to PHP 1.6 billion in 2017.”
FG Hydro’s revenues amounted to PHP 1.9 billion in 2018 compared to PHP 1.6 billion in 2017, which marks an increase of 13.4 percent or PHP 220.8 million. The increase was primarily due to higher revenues from electricity sales to WESM in 2018, as well as higher generation in the fourth quarter of 2018 due to the high water inflow brought by the period of rainfall during the summer monsoon and Typhoon Ompong.
The increase in revenues was slightly tempered by the expiration of the PSA between Pantabangan-Masiway and Nueva Ecija II Electric Cooperative, Inc. (Area I) or NEECO 2 Area 1 in August 2018 and lower ancillary service revenues in 2018 because of lower ERC-approved rates in the ASPA between FG Hydro and NGCP last March 2018.
FG Bukidnon’s revenues decreased by PHP 4.7 million, or 9.2 percent compared to 2017 due to lower dispatch as a result of lower water inflow particularly during the fourth quarter of 2018.
INTERNATIONAL STANDARDS MET
In December 2018, FG Hydro was officially certified for ISO 55001:2014 on Asset Management System with zero non-conformities and two positive observations. This is the first time this particular certification has been awarded to a company in the Lopez Group.
Both FG Bukidnon and FG Hydro successfully migrated and were certified for the 2015 versions of ISO 9001 and ISO 14001. Their certifications for the current version for OHSAS 18001 were retained in February and July, respectively. Transition to the new ISO 45001 standard is scheduled for 2019.
AWARDS AND RECOGNITION RECEIVED
FG Hydro received the 2018 Corporate Safety and Health Excellence Award (CSHEA) from the DOE for accomplishing zero LTI for the whole year of 2018. FG Hydro was also awarded for accomplishing zero LTI since Pantabangan-Masiway’s turnover to the company in 2006 and has, in fact, achieved 5 million man-hours without an LTI in June 2018.
In addition, FG Bukidnon earned a Hall of Fame distinction after winning another CSHEA. The Safety and Health Association of Philippine Energy Sector (SHAPES), in partnership with the DOE, grants this award to companies that achieved CSHEA for three consecutive years.
“FG Hydro achieved 5 million man-hours without a Lost Time Incident in June 2018.”
In 2017, the DOE released Circular No. DC2017-12-0015 detailing the On- Grid Rules of the newly promulgated Renewable Portfolio Standards (RPS). The circular requires electric power industry participants to source an increasing portion of their electricity requirements from eligible RE facilities. This is in line with the goal of reaching 35.0 percent RE generation mix for the country by 2030.
The circular’s eligibility is limited to new RE capacities that came in after the Renewable Energy Act passed in 2008. With this, FG Hydro sent a formal letter of request to the DOE to include its upgraded 20 MW capacity (in 2010) in the List of Eligible RE Facilities. In February 2019, the DOE approved the request and included the 20 MW capacity of the Pantabangan plant in the list of Eligible RE Facilities under the RPS. With the circular implemented, First Gen is on the lookout for potential off-takers to avail of the RPS incentive.
At present, First Gen has four Mindanao- based projects in the pipeline: the 32-MW Bubunawan Power Plant in Baungon, Bukidnon; the 33-MW Tagoloan ROR hydroelectric plant in Impasugong, Bukidnon; the 30-MW Puyo ROR hydroelectric plant in Jabonga, Agusan del Norte; and the 160-MW Cagayan 1N hydropower plant in Talakag, Bukidnon. Most projects are in the late stages of technical design and securing of permits.
In addition, First Gen continues to develop the market for its pending ROR projects in Mindanao, while participating in ongoing discussions on the extension of the feed-in tariff for hydropower in the country.