Renewable Energy Expansion and Foreign Investment in the Philippine Power Sector
Philippine power giant First Gen rebuffs foreign offers, plans up to US$2.6 billion in expansion.
ALL NEWSBUSINESS
First Gen Corporation, one of the Philippines’ major independent power producers, is continuing its renewable energy expansion strategy, with plans to invest up to P160 billion (approximately US$2.6 billion) over the next five years. The investment programme reflects the company’s continued emphasis on expanding its renewable energy portfolio, following its parent company’s decision not to accept a proposed investment from the US-based private-equity firm KKR. The group has also ruled out the proposed sale of its geothermal business to Indonesia-based Barito Renewables.
First Gen is controlled by the Lopez family, a prominent Philippine business group with historical roots in Iloilo. The company operates under First Philippine Holdings Corporation (FPH), a publicly listed company on the Philippine Stock Exchange (PSE). This ownership structure places First Gen within one of the country’s established corporate groups while allowing it to pursue investments in the energy sector through its renewable and conventional power businesses.
The company’s continued expansion is notable in the context of its market valuation. With a market capitalisation of more than P 65 billion and its shares trading at approximately P19 per share on the PSE, First Gen is pursuing further investment despite receiving foreign interest in the company and its renewable energy assets at valuations that reportedly exceed their implied market valuations. This strategy indicates the company’s preference for retaining and developing its renewable energy assets rather than pursuing immediate divestment or external ownership arrangements.