Outlook

The Yield of Our Deliberate Choices

In 2025, First Gen was tested—and the choices we made are now visible in the portfolio. 

We divested 60 percent of our natural gas business and redeployed that capital toward building our renewable energy portfolio. We initiated comprehensive feasibility studies for the Leyte geothermal complex to determine the responsible path forward for our above-ground assets under evolving reservoir conditions. We acquired Pi Energy, deepening our beyond-kWh offering ahead of the June 26, 2026 RCOA Phase 4 launch. And we launched the governance structures—the Gate Review and Approval Committee (GRAC) and the Sustainability Steering Committee—that embed disciplined decision-making into how the organization operates, not just how it reports.

First Gen enters 2026 operating a fully renewable generation portfolio—the direct result of capital allocation choices made to deliver on a commitment to a decarbonized and regenerative future. In 2026, we will scale that portfolio, protect our geothermal base, expand customer reach as RCOA Phase 4 opens, and embed the culture that delivers our strategy. The 2026 annual planning cycle will produce the updated growth and decarbonization targets that reflect the portfolio we now operate.

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2050: The Regenerative Future

Three decades is the timeframe to prove that a regenerative business model can deliver competitive returns. 

By mid-century, success means:

Net positive biodiversity:

Our operations restore more natural habitat and ecosystem function than they disrupt—demonstrating that energy infrastructure and thriving ecosystems are not mutually exclusive, and validating that regeneration can be an operational outcome.

Net Zero emissions:

Scope 1, 2, and 3 emissions reach net zero through our portfolio decarbonization—anchored in renewable generation, operational efficiency gains, and the phased deployment of removal technologies.

Communities and employees thriving:

Host communities show measurable improvements in livelihood, education, health, and climate adaptation capacity. Employees are enabled and engaged, reporting high well-being scores—demonstrating that Human Capital and Social and Relationship Capital grow alongside the business, not despite it.

Replicable regenerative business and operating models:

Financial performance demonstrates that investing across all six capitals—not optimizing for one at the expense of others—produces superior returns over time. This is proof that regeneration and profitability can reinforce each other—and a model other companies will want to follow.

What We Need to Get There: Policy as Infrastructure

The Philippines has the commitments and the frameworks to deliver its energy transition. First Gen has made its own declaration—in capital, in strategy, and in the deliberate management of a portfolio still on the journey. What we are asking for is that the regulatory framework continue to evolve in the direction it has already chosen.

EQUAL TREATMENT OF ALL RENEWABLE TECHNOLOGIES

The Philippine power system needs both baseload and variable renewables—and it needs a market that recognizes the distinct role each plays in getting to a lower-carbon grid. 

Geothermal and hydro deliver continuous power that keeps the grid stable as fossil fuel plants retire. Solar and wind deliver the scalable capacity the transition requires at speed. The market infrastructure meant to grow renewables works best with these complementary technologies.

These are not wholesale changes—they are targeted refinements to mechanisms already moving in the right direction. Compliance mechanisms that reward actual clean generation—not instruments that can be satisfied without it—would send a clearer signal to capital. Additionality rules that recognize the full contribution of low-carbon baseload alongside newer installations would allow existing renewable assets to play their stabilizing role through the coal-to-renewables shift. Moratorium boundaries that are firm enough to deliver a consistent market signal would give generators the confidence to commit capital over the multi decade timelines renewable infrastructure demands.

These are not new directions. They are the natural next steps of a policy that has already laid the foundation for a clean energy transition. We are ready to travel that road. We are asking that the road be built to take us there.

PATHWAYS FOR EVERY CUSTOMER

The desire to participate in the clean energy transition is present across every segment of the Philippine energy market. 

Each customer needs a pathway that is clear enough and fair enough to make the first step worth taking.

These are not new programs—they are completions of pathways already under construction. Clear pathways for distributed generation have been strengthened by recent reforms—credit banking, REC ownership, and simplified permitting among them. The direction is right. Ensuring net metering pricing fully reflects the value of energy exported to the grid—and that guidance is simple enough to act on—would allow every customer to move from intent to action.

EPIRA’s promise—that Filipinos can choose their energy—is now 25 years in the making. The architecture exists. The direction has been consistent across administrations and market reforms. What remains is delivery: ensuring that the enabling conditions make participation not just legally possible, but economically worthwhile—unlocking the customer engagement the country’s decarbonization depends on.

First Gen is ready to meet customers where they are—as regenerative partners in the transition. We are asking the government to open the pathway that makes that partnership possible, because it is the first step that enables good choices.