PLDT, Smart and First Gen Corporation Shift More Mindanao Telco Facilities to RE

​The top integrated telco network in the Philippines, PLDT Inc. (PLDT), and its wireless division, Smart Communications, Inc. (Smart), are strengthening their partnership with First Gen Corporation (First Gen), the largest producer of renewable energy (RE) in the country, in order to convert six (6) network facilities in Mindanao to 100% RE.

One of the sites moving to RE is PLDT Ponciano, a vital regional hub in Mindanao that also houses VITRO Davao, Davao City's first data center that serves the region's local and international businesses' needs for business continuity, security, and disaster recovery. With this changeover, VITRO Davao will also become the telecom company's first data center to run entirely on renewable energy.

“Following the switch of four (4) of our sites in the Visayas, we are once again tapping First Gen’s geothermal energy supply to increase the renewable component of the energy mix of our critical facilities in Mindanao. This enables us to future-proof our facilities, reduce our operational expenses, and support the government’s Green Energy Option Program in the region,” said PLDT Vice President and Sector Head for Property and Facilities Leo Gonzales.

For PLDT and Smart, this RE expansion in Mindanao is anticipated to result in yearly savings of about P23 million on energy and operating expenses. Additionally, it is predicted to cut greenhouse gas (GHG) emissions by nearly 13,000 tons annually, which will help them achieve their decarbonization roadmap's goal of reducing Scope 1 and Scope 2 emissions by 40% by 2030 from a baseline set in 2019.

"First Gen and PLDT share a common commitment towards decarbonization. We are honored to collaborate with the PLDT group, support their transition to RE, and help make their facilities more energy efficient and sustainable while providing meaningful connectivity to Filipinos," said Carlo Vega, First Gen Vice President for Power Marketing, Trading and Economics.

The PLDT Group intends to increase the proportion of renewable energy sources—such as geothermal, solar, and wind—in its energy mix. PLDT and Smart partnered with First Gen in May 2023 to offer RE energy, utilizing geothermal sources for network facilities in Cebu, Samar, Capiz, and Iloilo. The PLDT Group established its biggest solar rooftop project in the Visayas before joining forces with First Gen. This installation covered locations in Cebu, Roxas, La Paz, Iloilo, and Bacolod, as well as Cebu Jones and Mandaue City. The Group plans to convert more Greater Metro Manila facilities to RE by 2024.

“The achievement of PLDT and Smart’s decarbonization targets to reduce our environmental footprint depends on the support from like-minded partners such as First Gen, who helps companies transition to renewable energy.  This partnership with First Gen allows us to continue to enable the country’s digital transformation and help narrow the digital divide but in a way that is kind to the planet,” said PLDT First Vice President, Chief Sustainability Officer, and Head of Investor Relations Melissa V. Vergel de Dios.  

Apart from switching to renewable energy, PLDT and Smart have also been implementing resource optimization programs and green technology adoption for their network sites, corporate headquarters, and important buildings across the country. In order to reduce the carbon footprint of its network deployment and partially finance its fiber expansion, PLDT has also obtained green loans totaling P5 billion so far.

First Gen, on the other hand, is the largest provider of renewable energy in the country, with 26 facilities that use geothermal, hydro, wind, and solar power to produce electricity. First Gen generated more than 8,000 gigawatt hours of renewable energy in 2023, mostly from geothermal output.

To increase generating capacity, First Gen, a division of Lopez-owned First Philippine Holdings Corporation, is investing more than USD $2 billion. To assist the Philippine government's goal of increasing RE capacity from the present 22% to 35% by 2030, the firm wants to increase its total RE capacity to 7,500 megawatts by 2030.

The United Nations Sustainable Development Goals (SDGs), in particular SDG 9 on Industry, Innovation, and Infrastructure, SDG 7 on Affordable and Clean Energy, and SDG 13 on Climate Action, are being supported by these initiatives, which also aim to support the global goal to attain Net Zero by 2050.