Market trends and newly enforced regulations are creating a more favorable outlook for the demand for renewable energy, which should benefit First Gen, which is positioned as the leader in clean energy.
REGULATIONS INCREASING COMPETITION AND FAVORING RE TAKE EFFECT
The long delayed energy market mechanisms launched by the government are now in place and are increasing demand for clean energy. These are Retail Competition and Open Access (RCOA) and the Green Energy Option Program (GEOP). RCOA is in its third phase of implementation allowing customers with a monthly average demand of 500kW to contract their power supply from any licensed retail electricity supplier. Previously, these captive customers purchased their power supply from their distribution utility who chose the energy provider through bilateral supply contracts. GEOP, on the other hand, enables electricity consumers with at least a monthly average demand of 100kW to source their power supply requirements from renewable energy sources. The continued implementation of RCOA will further expand the number of retail customers within the energy industry. First Gen has taken the necessary steps to capture RCOA and GEOP markets by securing its licenses for retail electricity supplier and renewable energy supplier, respectively. The Company also embarked on a branding campaign to differentiate its clean power from its competitors and create a preference for its products and services.
FURTHER INNOVATION AND DECENTRALIZATION OF POWER
In the coming years, the Company foresees the introduction of more innovations, products, and services that will give more people access to reliable and affordable power both in and outside of the grid. In response to this, the Company will continue to explore energy efficiency solutions, micro grids, and small-scale clean power generation to provide competitive options to all types of consumers.
ENERGY TRANSITION
Globally, energy markets are increasingly expressing a preference for renewable energy and rejecting fossil fuel-derived power. The continued improvement in the viability of renewable energy and the advent of complementing new clean energy and storage technologies suggest that it is only a matter of time until this energy transition comes to fruition. First Gen’s portfolio is well-positioned for this transition as it is composed of flexible and reliable natural gas and renewable power generation sources. The Company is leading the LNG developments within the country to ensure that a cleaner and reliable energy source complements renewable energy throughout the transition. Recognizing that even LNG must eventually be phased out, the company is developing options to run its plants on alternative energy sources.