Lopez-led First Gen Corporation will be supplying additional 20 megawatts of renewable energy-based capacity to Central Negros Electric Cooperative (CENECO), one of the biggest power distribution utilities in the Visayas region.

In a statement to the media, First Gen noted that the supply of capacity to the Central Negros power utility is a culmination of the competitive selection process (CSP) process that CENECO had undertaken for its supply portfolio buildup.

“With this new contract, an additional 20 MW will be delivered making their total contracted demand from First Gen at 40 MW, and its biggest supplier of renewable energy,” the Lopez-led company emphasized.

The Lopez firm conveyed “under the said agreement, First Gen through its 100% renewable energy subsidiary, Energy Development Corporation, will provide 20 MW of power supply to CENECO.”

As firmed up in the deal, the 10-year power supply agreement will commence by fourth quarter this year, once all warranted requirements as well as regulatory approvals are secured.

First Gen stated that it has already been supplying RE-anchored capacity to CENECO since 2011 – and the contract demand had traditionally been at the scale of 20 megawatts, hence, the added capacity under the new supply pact would be a reinforcement of such long lasting partnership.

According to Carlo Vega, vice president for Power Marketing, Economics and Trading of First Gen, their business relationship with CENECO “is one that has been strengthened over time by mutual respect and trust,” with him qualifying that the parties share common value on environmental stewardship that will greatly aid in preserving planet Earth.

CENECO Acting General Manager Arnel Lapore, for his part, asserted that the utility firm “prioritizes contracting for sustainable and reliable energy as seen in their decision to make 40% of their overall contracted supply renewable and the intention of increasing this number in the future.”

Lapore further indicated that by year 2030, they are aiming to ramp up the base of their renewable energy capacity contracting to satiate CENECO’s clean energy supply portfolio.

For this renewed supply deal with the Central Negros power utility, Vega said “we’ve shared so much and weathered through many storms – literally and figuratively. And we’re still here trying to do something good for our stakeholders. And now more than ever, I feel like our relationship in terms of value is highlighted.”

Under the Renewable Portfolio Standards (RPS) policy instituted by the government, private distribution utilities and electric cooperatives are required to procure prescribed percentage of their supply from RE facilities, but some industry players like CENECO have been going beyond that mandate.