Quest continues for 50% RE Power Mix in Mindanao by 2030

By Mike Baños

CAGAYAN DE ORO CITY/6 October 2026 – Energy stakeholders in Mindanao continue their relentless campaign to attain a 50/50 renewable/thermal energy mix for the island grid by 2030.

Based on 2025 data from the Department of Energy (DOE), Renewable Energy (RE) accounts for 35% of generation capacity, but if Agus-Pulangi is optimized, RE share could go up,” said Assistant Secretary Romeo M. Montenegro, Deputy Executive Director of the Mindanao Development Authority(MinDA).

“If we add a few of recently commissioned solar and bite-size hydro, RE may hover around 37-38% of gross power generation, which is on the path and well on track to our 50-50 target by 2030,” he added.

Moreover, if the announced pipeline of committed and indicative RE projects especially those eyed for GEA Mindanao are built within timeline, at least 50% RE by 2030 is attainable, provided no expansion of coal fired power plants happens.

Converting to RE

In Cagayan de Oro, the country’s leading renewable energy (RE) company is  slowly but surely keeping that target date and percentage within reach by helping more companies attain 100% RE and  expanding its RE capacity in the island.

On October 3, 2025 Mets Cold Storage Services, Inc (Mets), the Philippines leading cold-storage operator, tapped First Gen to covers up to 2,050 kilowatts of its demand for the on-going expansion of Mets facility in Barangay Tablon, for its push for more sustainable operations.

A month later, Capitol University Medical Center (CUMC), one of the largest private medical facilities in Mindanao, became the first hospital in Northern Mindanao to be fully powered by renewable energy (RE) as First Gen supplies 900 kilowatts (kW) of geothermal power to support the electricity needs of the 200-bed hospital, including its Kidney Institute, and other specialty care facilities.

METS availed of the government’s Retail Competition and Open Access (RCOA) program which allows contestable customers with 100kW and above demand to decide which power suppliers to source energy from as mandated by the Electric Power Industry Reform Act of 2001 (EPIRA) to offer options to the end-users and grow the market.

On the other hand, CUMC availed of the Department of Energy’s Green Energy Option Program (GEOP) that allows consumers with 50kW-100kW demand to source renewable energy from a licensed supplier as opposed to consuming whatever is supplied by their distribution utility. It is established in Republic Act No. 9513, also known as the Renewable Energy Act of 2008.

First Gen will source the electricity for these two establishments from the Mt Apo Geothermal Plant in Cotabato, owned and operated by First Gen subsidiary Energy Development Corporation.

First Gen-owned Energy Development Corporation is the Philippines’ pioneer and largest 100% renewable energy producer and the world’s largest vertically integrated geothermal company. The Philippines is the 3rd Largest Geothermal Producer in the World.

Current installed capacity 1,597.57 MW accounts for 17% of the country’s total RE generation. while its 1,302.78 MW is 56% of the country’s total installed geothermal capacity.

With over 1,700 megawatts (MW) of RE capacity from over 22 geothermal, wind, solar and hydro facilities, First Gen is the largest RE provider in the Philippines. 

Expanding the RE Portfolio

Aside from the Mt Apo geothermal facility, First Gen owns and operates a 1.6 MW run-of-river mini-hydro facility in Manolo Fortich, Bukidnon that uses water flowing from the Agusan River.

The company is also expanding its portfolio in Mindanao with two other planned hydro projects—the 32-MW Bubunawan Hydro project in Libona, Bukidnon; and the 39-MW San Isidro Hydroelectric Power Project, along the Cagayan River slated to start construction in 2029. Both proposed projects plan to utilize run-of-river design, which means electricity is generated by using a river’s natural flow without building a large dam or reservoir and minimizing environmental impact.

In partnership with Prime Infrastructure Capital, First Gen also operates four gas-fired power plants with a combined capacity of 2,017 MW. These facilities support baseload requirements and help offset the intermittency of renewable sources. This diversified portfolio of renewable and low-carbon energy assets plays a vital role in stabilizing power supply and enhancing energy security.

First Gen owns the largest zero-coal portfolio in the country with 31 energy facilities producing more than 1,764.2MW of renewable energy, contributing the lowest carbon footprint among the biggest Independent Power Producers. It is the country’s largest RE producer, constituting 30% of the Philippines’ RE mix  with over 8,319.9 GWh.

Portfolio target

First Gen has set an ambitious goal of growing its portfolio to 13,000 MW by 2030. This push includes interests in natural gas plants.

To hit this goal, First Gen’s top officials said the firm would heavily bank on expansion in the geothermal power segment. This, given that geothermal power generators can run round the clock to meet minimum demand.

Expanding Generation Capacity in Mindanao

The power generation sector in the Philippines is largely private-sector driven. The Department of Energy (DOE), therefore, continues to facilitate investments in additional generation capacity, particularly renewable energy projects, to support the country’s long-term energy security.

For 2026–2031, Mindanao has: 30 committed power projects with a total capacity of 1,323.915 MW; and  37 indicative power projects with a total capacity of 3,256.98 MW. Together, these represent approximately 4,580.895 MW of additional potential generation capacity.

Approximately 90.26% of the combined capacity of the committed and indicative projects is from renewable energy sources, reflecting the continuing development of a cleaner and more sustainable energy mix in Mindanao. Once completed and commissioned, these projects are expected to provide additional generation capacity, strengthen the supply outlook, and support the region’s growing electricity requirements.