Araneta City partners with First Gen for RE supply, retail aggregation
Araneta City (ACI Inc.) sets another milestone by being among the first mixed-use hubs in the Philippines to adopt retail aggregation for some of its properties, and directly connect these to renewable hydroelectric power, both in partnership with First Gen Corporation (First Gen). The properties included in the retail aggregation and renewable energy transition are the New Frontier Theater, Ali Mall, and the Manhattan Gardens residential development.
Under the agreement signed last October 14 by representatives of Araneta City and First Gen, the latter would pool the power demand of over 200 retail and service tenants in Ali Mall and New Frontier Theater, including the events and concert hall, as well as the over 9,000 apartments in 18 residential towers of Manhattan Gardens, and directly supply these aggregated customers with renewable energy (RE) from its Pantabangan-Masiway and Casecnan Hydroelectric Power Complex in Nueva Ecija.
"Each of our properties has energy demands, and switching to retail aggregation and using RE is a strategic move that will enable us to improve energy efficiency and effectively manage our electricity costs," said Antonio Mardo, ACI Inc. senior vice president of operations, "We hope that our relationship with First Gen will continue over the years and even expanded."
Spanning 35 hectares in the heart of Metro Manila, Araneta City is a trailblazer in commercial and retail developments in the Philippines. Known as the City of Firsts, Araneta City has been a pioneer in property development, seamlessly integrating retail, entertainment, residential, hospitality, and office spaces for over 70 years.
Araneta City availed of two government initiatives: the Retail Aggregation Program, which enables multiple electricity end-users within the same contiguous area to combine their power demand and collectively purchase electricity directly from a supplier; and the Retail Competition Open Access program, which allows consumers with a monthly peak demand of at least 500 kilowatts over the past year to choose their own electricity suppliers. By aggregating end-users and choosing First Gen, Araneta City not only secures cost-efficient electricity but also reduces the carbon footprint of its operations with RE usage.
"We are privileged to transition Ali Mall, an iconic retail landmark, to retail aggregation and RE. We are aligned in our common goal to make a decarbonized and regenerative future iconic and look forward to continuing to partner with Araneta City in its sustainability journey," said Carlo Vega, First Gen Chief Customer Engagement Officer.
First Gen, the leading RE producer in the Philippines, has 300 MW of generating capacity from the Pantabangan-Masiway and Casecnan hydro complex, as well as the Agusan River facility in Bukidnon. Its RE portfolio also includes 1,300 MW of capacity from geothermal, solar and wind. 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, helping stabilize power supply and enhance energy security.
