First Gen Renews Commitment to Expand Geothermal Supply in Eastern Visayas

Posted on July 11, 2026 at 8:17 am

KANANGA, Leyte — As consumers across Eastern Visayas brace for another increase in electricity rates, First Gen Corporation says the region already has a reliable source of power that can help cushion the impact of rising global fuel prices: Leyte’s geothermal energy.

Through its renewable energy arm, Energy Development Corporation (EDC), the company has reaffirmed its commitment to supply more electricity to Leyte and the rest of Region 8 through the Tongonan Geothermal Power Plant in Ormoc City.

For decades, the Tongonan facility has generated electricity using steam from geothermal reservoirs beneath Leyte. Because it runs on a local resource instead of imported coal or oil, geothermal power is not affected by fluctuations in international fuel prices.

“Serving our home region has always been a priority for us,” said Teodulfo Troyo, head of the EDC Tongonan Geothermal Power Plant at the Leyte First Gen Renewables facility.

“While shifting parameters in the recent bidding frameworks unfortunately kept us from participating, we are fully prepared to offer our available power supply whenever future procurement terms accommodate the operational realities of existing renewable energy plants like ours,” Troyo said.

The company’s statement comes as electric cooperatives in Eastern Visayas continue to grapple with rising electricity costs.

During a press conference in Tacloban City on July 8, officials of the Federation of Rural Electric Cooperatives in Region 8 (FRECOR-8) said consumers would see higher electricity bills because of soaring Line Loss and Congestion Costs (LLCC) charged through the Wholesale Electricity Spot Market (WESM).

The federation said electric cooperatives in the region were billed more than P572 million in LLCC for July, the highest monthly charge recorded so far.

FRECOR-8 officials explained that these are pass-through charges, meaning the cooperatives do not earn from them but simply collect the amount from consumers to pay the electricity market. They also renewed their appeal for reforms, saying consumers should not continue shouldering the cost of congestion in the country’s transmission system.

Amid these rising costs, First Gen said geothermal energy can provide a more stable alternative.

Unlike power plants that depend on imported fuel, geothermal plants use naturally occurring steam from underground reservoirs. This means they are not exposed to sudden increases in coal or oil prices, helping keep electricity rates more stable.

The company, however, pointed out that geothermal plants still require continuous investment. Wells need to be maintained, new ones have to be drilled when necessary, and steam fields must be sustained to ensure a reliable supply of electricity 24 hours a day.

First Gen said this approach has benefited consumers served by Leyte II Electric Cooperative (LEYECO II) and Leyte III Electric Cooperative (LEYECO III), which have been sourcing power from EDC’s Green Core Geothermal, Inc. for the past 15 years.

According to the company, customers in these areas have enjoyed lower and more predictable electricity prices, along with the zero-VAT incentive granted to renewable energy.

First Gen believes the same benefits can be extended to more consumers across Eastern Visayas.

The company said it still has available generating capacity from its Leyte geothermal facilities and is ready to supply additional electric cooperatives once new procurement opportunities open.

It clarified, however, that it was unable to participate in the Federation of Rural Electric Cooperatives in Region 8’s Competitive Selection Process (CSP) in 2024 after changes to the bidding rules placed limits on operations and maintenance cost components.

According to First Gen, those provisions may work for coal-fired power plants because fuel costs can simply be passed on to consumers. Geothermal plants operate differently. While they do not spend on fuel, they rely on continuous investments to maintain steam fields and production wells that keep the plants operating around the clock.

The company said limiting future operations and maintenance costs based on historical figures made it commercially unviable for existing geothermal facilities to join that round of bidding.

Despite that setback, First Gen said it remains interested in supplying more power to the region through future competitive bidding or emergency power supply arrangements that recognize the operating requirements of renewable energy plants.

“We believe that the best way forward is open cooperation,” Troyo said.

“We are ready to work with local energy stakeholders and electric cooperatives to find compliant solutions that will bring long-term, affordable, and clean energy to the consumers of Region 8.”

With electricity prices continuing to rise and consumers feeling the impact on their monthly bills, First Gen said expanding the use of Leyte’s geothermal resource could help provide a more stable power supply while reducing the region’s dependence on imported fuel.

Photo credits: Tongonan Geothermal Power Plant