First Gen Corporation said its decade-long decision to remain coal-free is increasingly positioning the company advantageously as the Philippines confronts growing energy security risks tied to fuel volatility, climate change, and rising power demand.

Speaking during the company’s 2026 Annual Stockholders’ Meeting on May 28, First Gen Chairman and CEO Federico R. Lopez said the company’s 2016 commitment not to build, own, or operate coal-fired power plants was grounded on long-term structural trends rather than short-term market conditions.

“At the time, coal remained the dominant source of baseload power in many markets, while renewable technologies had yet to achieve their current scale and competitiveness,” Lopez said. “It was not a decision made in response to prevailing sentiment. It was a decision grounded in trajectory.”

According to Lopez, global energy markets have since shifted significantly, with renewable technologies rapidly scaling while carbon risks and energy security concerns increasingly influence investment and infrastructure decisions.

“Today, we are the country’s largest producer of renewable energy, with a diversified portfolio spanning geothermal, hydro, wind, and solar resources built through decades of sustained investment,” Lopez said.

During the ASM, the company highlighted continued investments in geothermal, hydro, wind, solar, battery storage, and pumped-storage hydro projects as part of its broader renewable energy expansion strategy.

Among its major initiatives is the planned development of around 2,000 megawatts of pumped-storage hydro capacity in partnership with Prime Infrastructure.

First Gen Vice Chairman, President, and COO Francis Giles B. Puno said the company committed around PHP 62 billion toward the pumped-storage projects, largely funded through the partial sale of its natural gas business.

According to Puno, the facilities are expected to strengthen grid flexibility and support the continued integration of renewable energy into the power system.

While First Gen continues accelerating its renewable energy investments, Lopez said natural gas still plays an important stabilizing role in ensuring grid reliability as renewable penetration increases.

“At the same time, we recognize that reliability, affordability, and decarbonization must advance together,” Lopez said.

Puno also warned that the Philippines continues facing growing energy security pressures due to imported fuel dependence, geopolitical instability, climate volatility, and rising electricity demand.

“Energy security has never been more critical — not only to economic stability, but increasingly, to national resilience itself,” Puno said.

Lopez reassured investors and stockholders that the company’s business will remain unaffected by the family’s tense rift, especially after the holding company board withdrew their resolution to oust him.

Lopez also added that the energy transition should not be viewed merely as a compliance requirement or market trend.

“This is why the work of energy transition cannot be viewed narrowly as compliance, ideology, or short-term market positioning,” Lopez said. “It is fundamentally about nation-building, energy security, and long-term economic stability.”

As fuel volatility and climate pressures continue reshaping global energy markets, will more Philippine energy companies accelerate investments in long-term renewable and storage infrastructure?

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