First Gen
Business Model

Aligned with the value creation process of FPH, First Gen invests in its various forms of capital, develops conscious leaders, and cultivates capabilities for long-term value creation to support its power plant projects and operations. These initiatives sustain the transition toward a regenerative and decarbonized future.

By fostering collaboration and trust, we aim to influence our various stakeholders in our mission to create regeneration and decarbonization pathways through:
a) generation of low-carbon and renewable power;
b) transmission of power to the grid; and
c) distribution of power to customers and businesses.

Power Generation

First Gen produces low-carbon and renewable power for our customers using five different sources:

Natural Gas Power

First Gen’s gas power plants use indigenous natural gas sourced from the Malampaya gas field in Northern Palawan to generate power. It is delivered via an undersea pipeline to the First Gen Clean Energy Complex in Batangas, where it is combusted to spin turbines that generate electricity.

Geothermal Power

The Company’s geothermal power plants generate energy using the earth’s natural heat. When water seeps three kilometers below the ground and is heated in the hot reservoir, it rises back up as steam to power the turbines and produces electricity. After the heat extraction process, the condensed water is reinjected to its source to replenish the geothermal reservoir.

Hydroelectric Power

Hydroelectric power generation follows the hydrological cycle. Reservoirs store potential energy gathered during the rainy season. First Gen’s hydro plants harness this stored energy through their intake towers and convert to kinetic energy through the force of flowing water. The plant’s turbines then spin and convert into mechanical energy which generates electricity. After this process, the water flows back to its source.

Wind Power

The turbines convert the wind to kinetic energy. Then, the moving blades spin the shaft connected to the generator to produce electricity.

Solar Power

Solar energy is produced when photovoltaic cells in solar panels absorb sunlight particles called photons. Photons energize the electrons in the silicon, which go through copper wirings in the solar panels. The solar panels then generate direct current (DC) power which passes through an inverter to convert electricity into usable alternating current (AC) power.

Detailed description of our power plants can be accessed in the First Gen website’s ‘Our business’ webpage.

Transmission

The National Grid Corporation of the Philippines manages the electricity flow from generation companies to distribution utilities through the state-owned power grid. NGCP also ensures the energy supply of the power grid always meets the energy demand and system frequency by managing the reserves.

First Gen supplies energy to the NGCP by entering into Ancillary Service Procurement Agreements (ASPAs) which permit energy provision to the NGCP’s reserves. These reserves adjust the energy supply in the power grid and manage the system’s frequency to match the energy demand and maintain grid health.

Distribution

Distribution utilities manage the physical energy flow from NGCP to Contestable Customers (large end-users with at least 500kW monthly average electricity consumption at peak demand) and the Captive Market (customers with a monthly average electricity consumption below 500kW at peak demand).

First Gen enters into Power Supply Agreements to provide the energy requirements DUs deliver to their coverage area. First Gen also partners with DUs by entering into Distribution and Wheeling Services Agreements (DWSA) to serve First Gen’s contestable customers located in the DU’s coverage area.

First GenBusiness Model