First Gen subsidiary wins Casecnan plantFirst Gen Corporation subsidiary Fresh River Lakes Corporation (FRLC) won the bidding for the Casecnan Hydroelectric Power Plant (CHEPP) with its offer of $526 million for the 165-megawatt (MW) power plant in Nueva Ecija.
The deal includes the power generation facilities of the Casecnan multipurpose irrigation and power project and the operation and maintenance of the related non-power components and transbasin facilities.
FRLC’s bid topped Neptune Hydro Inc.’s $258 million and the $298.9 million offer of the consortium composed of EEI Power Corporation, Soosan ENS Co. Ltd., Soosan Industries Co. Ltd. and Mapalad Power Corporation.
FRLC said its higher valuation was spurred by the run-of-river facility being an “operational fit” with the 132- MW Pantabangan-Masiway power plants and 120-MW Aya pumped-storage hydroelectric power project, which are located in the same area.
According to First Gen president and chief operating officer Giles Puno, the acquisition of CHEPP will ensure “that the reservoir is controlled by First Gen ... we could supplement even more supply coming from the upstream side of Casecnan, then that will help Pantabangan-Masiway.”
Aside from being the main irrigation source for Nueva Ecija farmers, CHEPP also contributes to the power needs of the Luzon grid. The addition of CHEPP will help First Gen augment the power supply shortfall with PantabanganMasiway running at only 45% of its total capacity due to low water levels.
Moreover, the facility will allow First Gen to build up its renewable energy assets.
“It also enables us to build our solar and wind [projects] as well because these are intermittent. If we add it up, we create a renewable energy portfolio,” Puno told reporters during First Gen’s annual stockholders’ meeting last month.