Mount Grace Hospitals, Inc. (MGHI), with the help of First Gen, has shifted 13 of its partner hospitals to a renewable energy (RE) electricity supply by using several government programs that allow large consumers to choose their suppliers.

The transition was carried out under the government’s Retail Aggregation Program (RAP), Green Energy Option Program (GEOP), and the Retail Competition and Open Access (RCOA).

The agreements were signed in December last year and came into effect in February 2026, allowing the hospitals to source renewable energy for their operations.

Under RAP, 10 hospitals are supplied with around 4.5 megawatts (MW) of electricity, and then under GEOP, 2 hospitals secured 600 kilowatts (kW), and the one remaining hospital secured 700 kW under RCOA.

RAP allows multiple end-users to combine their electricity demand to meet the 500-kW threshold required to qualify as contestable customers. GEOP enables users with at least 100 kW demand to directly contract with renewable energy providers. RCOA, finally, allows those meeting the 500-kW threshold to choose their electricity suppliers.

First Gen sources the electricity from their hydroelectric facilities in Nueva Ecija and geothermal plants in Leyte and Cotabato.

“What this partnership demonstrates is the power of the Mount Grace network in working together to achieve common benefit and goals which will not only improve the efficiency of each hospital but also generate monthly savings on our electricity costs. More importantly, our use of renewable energy reiterates our commitment towards environmental stewardship and community well-being,” said Divine Grace Medical Center President Dr. Leonard Lao.

“Even as we transition to renewable energy, it is critical that healthcare and medical facilities continue to have stable and steady power sources. We are privileged to support the shift to cleaner energy of one of the biggest hospital groups in the country and are committed to supporting Mount Grace Hospitals in its decarbonization initiatives,” said First Gen Chief Customer Engagement Officer Carlo Vega.

How can more institutions take advantage of renewable energy programs to reduce costs while ensuring reliable power supply?

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