Lopez-led First Gen Corp. has bagged a supply deal with Araneta City (ACI Inc.), which is one of the first mixed-use hubs to embrace retail aggregation.
The company on Thursday said the agreement, inked last week, would cover the electricity needs of more than 200 retail and service establishments. These are tenants at Ali Mall and New Frontier Theater. The supply contract also covers 18 residential towers of Manhattan Gardens.
The government’s retail aggregation program allows multiple consumers sharing a common area to pool their demand to hit the 500-kilowatt minimum threshold.
First Gen said the electricity supply would be sourced from its Pantabangan-Masiway and Casecnan Hydroelectric Power Complex in Nueva Ecija. This facility has 300 megawatts (MW) of generating capacity.
‘We are privileged to transition Ali Mall, an iconic retail landmark, to retail aggregation and renewable energy,’ Carlo Vega, First Gen chief customer engagement officer, said in a statement.
Antonio Mardo, senior vice president of operations at ACI Inc., meanwhile, also signaled interest in expanding their partnership.
Strategic move
‘Each of our properties has energy demands. Switching to retail aggregation and using renewable energy is a strategic move that will enable us to improve energy efficiency and effectively manage our electricity costs,’ Mardo said.
First Gen’s renewable energy portfolio includes 1,300 MW of capacity from geothermal, solar and wind power facilities. It also has interests in four natural gas-fired power plants with a combined capacity of 2,017 MW.
By 2030, the group hopes to scale up its portfolio to 13,000 megawatts. First Gen banking on the expansion of its geothermal projects to reach the goal.
The company finished the first half with an almost flat growth in net income, which was pegged at P8.6 billion. This, as gains from its hydro were not enough to offset its weaker geothermal and gas businesses.