First Gen Corporation: Powering a decarbonized Philippines through clean energy use in businesses
Apart from the COVID-19 pandemic, many of the world’s brightest minds are also directing attention to another global crisis — climate change.
A recent report released by the Intergovernmental Panel on Climate Change (IPCC) declared that changes observed in the climate are unprecedented in thousands, if not hundreds of thousands of years, and some of the changes already set in motion — such as continued sea level rise — are irreversible over hundreds to thousands of years.
In fact, the report finds that unless there are immediate, rapid and large-scale reductions in greenhouse gas emissions across the globe, limiting warming to close to 1.5°C or even 2°C will be beyond reach. Over the next 20 years, global temperature is expected to reach or exceed 1.5°C of warming, which means increasing heat waves, longer warm seasons and shorter cold seasons, among other catastrophic effects such as rising sea levels, and large-scale changes to rainfall and ecosystems. Should the world reach 2°C of global warming, heat extremes would more often reach critical tolerance thresholds for agriculture and health.
Mitigating climate change means addressing one serious concern: How can developing nations who currently rely on fossil fuels, like the Philippines, continue to meet their growing energy needs without adding too much global carbon emissions?
The International Energy Agency assessed the impact of fossil fuel use on global temperature increases and found that carbon dioxide (CO2) emitted from coal combustion was responsible for over 0.3°C of the 1°C increase in global average annual surface temperatures above pre-industrial levels. This makes coal the single largest source of global temperature increase.
In fact, the IEA found that coal-fired power plants were the single largest contributor to the growth in emissions observed in 2018, with an increase of 2.9%, or 280 megatons (Mt), compared with 2017 levels, exceeding 10 gigatons (Gt) for the first time. As a result, coal-fired electricity generation accounted for 30% of global CO2 emissions. The majority of that generation is found today in Asia.
Furthermore, surging coal demand has driven global energy-related carbon dioxide emissions to a projected 1.5 billion tonnes in 2021 — the second-largest increase in history. According to the IEA’s Global Energy Review 2021 estimates that CO2 emissions will increase by almost 5% this year to 33 billion tonnes. The key driver is coal demand, which is set to grow by 4.5%, surpassing its 2019 level and approaching its all-time peak from 2014, with the electricity sector accounting for three-quarters of this increase.
These findings further prove that decarbonization, or the process of reducing of carbon dioxide emissions through the use of clean and low carbon power sources, is key to mitigating climate change. If the world is to achieve this big task, it needs to switch to cleaner sources of energy — and do so immediately.
Facing the challenge of decarbonization
Clearly, the task of decarbonizing the world’s energy systems would require a colossal effort from both policy makers and industry leaders. While the public sector has a critical role in reform and in policies regarding the limiting of carbon emissions, the private sector has a part in ensuring the sustainability of its practices. Fortunately, in the Philippines, consumers are becoming more aware and mindful and therefore, demanding more from the companies they patronize.
“It is through the manufacturing and sale of goods that businesses have the biggest impact on climate change. In the process of manufacturing — the way we use natural resources — and in the way we dispose of our waste,” Ricky Carandang, Vice President of First Gen Corporation (First Gen), one of the leading providers of clean and renewable power in the Philippines, said in an e-mail.
“However, consumers are getting conscious of their impact on the environment which puts pressure on big businesses to comply with the demands of the market to produce more environmentally responsible products,” he added.
First Gen aims to meet the changing demands of consumers and seeks to be the preferred provider of clean energy in the country. The company has an installed capacity of 3,495 megawatts (MW) of clean energy that powered 19% of the Philippines in 2020.
Moreover, it is the first company to declare that they will no longer be supporting coal back in 2016 when most power companies were still pushing for it.
The company promotes the increased use of renewable energy complemented by natural gas to address intermittency and reliability. Currently, the company’s energy portfolio is made up of clean and renewable energy sources — natural gas, geothermal, hydro, wind, and solar energy.
First Gen’s mission is to lead the country’s transformation towards decarbonization by meeting the needs of the growing energy market with reliable, efficient, clean and renewable power with the least impact to the environment.
To enable a just and smooth transition to happen as quickly and as fairly as possible, Mr. Carandang noted, consideration should be given to legacy energy sources that are at risk of being stranded as this will also affect thousands of Filipinos and their communities.
As technological progress continues, it becomes much easier to transition to cleaner sources of energy. The only prerequisite is an environment that encourages swift adoption of new, better technological developments.
First Gen’s commitment is about harnessing only those energy sources that provide for the needs of the present without harming the future generations. As it invests in its development as the country’s leading clean and renewable energy provider, the company continues to evolve with the changing needs of society, delivering resilient and compelling energy solutions that will promote energy security, as well as encouraging its customers, partners, and other stakeholders to make the right choices and to reduce their carbon footprints.
“[Zero net emissions] is achievable for the Philippines provided that we — the government, consumers, and businesses — get serious about finding solutions and it has to be something that the local and global community should also recognize and work on,” Mr. Carandang added.
As the cost of producing renewable energy goes down, and as technological advancements increase, renewable energy will become more viable in the next 10 years. This is already happening in a lot of other countries.
Discover more about First Gen’s energy solutions for businesses by visiting www.firstgen.com.ph.
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