Harnessing the Power of Water: The Casecnan Hydroelectric Power Plant Transition

SOURCE: FIRST GEN

In a transformative move, the government, specifically through the Power Sector Assets and Liabilities Management Corporation (PSALM) and the National Irrigation Administration (NIA), has passed the baton of the Casecnan Hydroelectric Power Plant to First Gen Corporation's subsidiary, Fresh River Lakes Corporation (FRLC).

This momentous event saw the personnel of PSALM and NIA formally transferring the operations of the Casecnan hydro facilities in Pantabangan, Nueva Ecija to First Gen, following the latter's successful acquisition of all regulatory permits and the remittance of the power plant's purchase payment.

The completion of the 165-megawatt (MW) Casecnan power plant sale, which was part of the government's privatization program and auctioned-off by PSALM last year, marks a significant milestone in the history of the country's power sector.

First Gen's strategically high bid of a US$526-million offer through FRLC not only topped the auction, but it significantly surpassed the government's minimum bid price.

From First Gen's standpoint, the acquisition saved the company both time and cost that would have been spent on constructing a similar hydro plant from scratch.

The sale of the Casecnan power plant to First Gen, the largest privatization of a state power asset under the Marcos administration, underwent a stringent evaluation process and was approved by various government agencies to facilitate a smooth transition of the power plant.

In addition to the power plant, First Gen's acquisition also includes the switchyard, the administration complex, guest house and some roads. However, the non-power components of Casecnan, such as the irrigation facilities, the weir, and the tunnel, remain under the government's ownership.

First Gen's portfolio of renewable energy sources is further bolstered by the acquisition of the Casecnan power plant, strengthening its position as a leading clean energy provider in the country.

Notable government officials including President Ferdinand Marcos, Jr have been invited to inspect the Casecnan plant and the surrounding Pantabangan Lake reservoir, which serves as a significant infrastructure for power generation and irrigation.

With the acquisition of the Casecnan power plant, First Gen has successfully expanded the combined capacity of its low-carbon power plants, paving the way for a brighter and more sustainable future in the field of energy.