Lopez-Led First Gen Corp. will invest up to $600 million in the next five years for wind energy projects under its expanded plans to tap this renewable energy source based on data provided by a ranking official late last week.
“There are wind sites we are looking at and we are seeing an increase in our wind portfolio of maybe 200 megawatts (MW). That [capacity] is from now until 2015,” First Gen President Giles B. Puno said in a telephone interview.
The projects are estimated to cost $2.5 million to $3 million per megawatt, Mr. Puno said.
The 200-MW target is higher than the 86 MW that was initially expected to be generated by the Burgos wind project in Ilocos Norte which will be run by First Gen subsidiary Energy Development Corp. (EDC).
The portfolio was expanded after another First Gen unit, First Gen Renewables, Inc., was granted priority for six of the 14 service contract areas it applied for at the Energy department, Mr. Puno said.
“But it is still dependent on the approval of feed-in tariffs and transmission lines in the area,” Mr. Puno clarified.
Feed-in tariffs are guaranteed payments given to renewable energy investors sourced through a universal charge imposed on end-consumers.
First Gen is also seeking to expand its hydroelectric and geothermal portfolio, Mr. Puno added.
“We will also pursue the various expansion projects at EDC’s existing [geothermal] sites namely the 20-MW Nasulo, 50-MW Mindanao 3, 40-MW Bacon-Manito 3, and 40-MW Kayabon projects,” he said.
“There are also various mini-hydro projects totaling to 80 MW currently being studied by First Gen to meet the power needs of Mindanao,” he said.
The company had earlier said it is looking at expanding its international footprint through geothermal projects in Indonesia and Latin America.
First Gen’s attributable net income for the first quarter fell 55% to $16.1 million from $36.1 million in the same period last year. Its core net income also fell 42% to $20.9 million from $29.1 million.
The company attributed the lower earnings to the lower contributions from geothermal affiliate EDC and FG Hydro.
Consolidated revenues dropped 10% to $314.1 million in the first quarter.
Shares in First Gen closed at P15.20, down 0.52% from its previous close of P15.28 apiece.
