MANILA (AP) — Lopez-led First Gen Corp. will deliver clean geothermal electricity to Lyceum of the Philippines University’s campuses in Batangas and Laguna under a new supply agreement inked earlier this month.

The pact pools over 1,150 kilowatts of demand from the two southern Luzon sites. That volume qualifies them for retail competition rules, allowing a switch from traditional grid power to renewable sources. Electricity flows from First Gen’s unified generating plants in Leyte, a geothermal hotspot.

LPU President Peter Laurel hailed the move as a step toward greener operations. “Over the years, we have learned a lot from the Lopez Group,” Laurel said. “This partnership will not just help us make our campuses greener but also help us attain cost-efficiency in power.”

The university runs five campuses across Metro Manila and southern Luzon. Leaders there push sustainability across all locations. This deal targets optimized electricity costs and reduced energy intensity at the Batangas and Laguna facilities.

“We are optimistic that our partnership with First Gen will open more opportunities for us to use more renewable energy and become more energy efficient,” Laurel added.

First Gen’s chief customer engagement officer, Carlo Vega, pointed to aligned values. Retail competition and open access rules made the deal possible. Those regulations lowered demand thresholds, letting institutions like LPU enter the market.

“As retail competition and open access were implemented and thresholds went down, we are proud to partner with LPU, whose values and commitment to environmental sustainability align closely with ours,” Vega said. “We look forward to being their progress partner as Lyceum moves forward with their vision to have green campuses.”

The arrangement falls under the retail aggregation program. It lets multiple end-users in a contiguous area or under common ownership combine demand to hit the 500-kilowatt minimum for picking suppliers. Officials expect that threshold to drop to 100 kilowatts on June 26. The change should bring more consumers into competitive retail markets.

First Gen, part of the Lopez Group, operates some of the Philippines’ largest geothermal facilities. Leyte hosts key plants that produce baseload power with low emissions. LPU’s shift adds to a wave of institutions adopting renewables amid rising energy costs and climate goals.

The university did not disclose contract terms or exact savings. But Laurel emphasized dual benefits: environmental gains and financial relief. Southern Luzon campuses stand to cut reliance on fossil fuels, aligning with national pushes for cleaner energy.

Philippine regulators have eased retail rules since 2017 to spur competition. Aggregation has grown popular among schools, hospitals and small businesses. First Gen has inked similar pacts with other education groups, Vega noted.

For LPU, the timing fits broader expansion plans. Satellite campuses in Batangas and Laguna serve thousands of students. Geothermal power promises steady supply without weather dependence, unlike solar or wind.