EDC encourages government to aid geothermal development

MANILA, Philippines – Lopez-led Energy Development Corp. (EDC) is encouraging government to support the development of more geothermal projects—a clean and steady-priced power supply source—as it says the country cannot just rely on coal-fired power plants.

A staunch supporter of clean energy adoption, EDC said geothermal is not only a clean and renewable energy source but its cost and supply are stable.

EDC president and COO Richard Tantoco said the country cannot depend on coal-fired power plants for stable prices since coal is no longer a cheap fuel and is volatile in terms of pricing.

“Indonesian coal was $44 a metric ton in February and just a couple of weeks ago it reached $110 (per metric ton),” he said.

Tantoco highlighted the risk in relying heavily on a single fuel source, saying consumer will bear the burden if that fuel source encounters supply shortages or sharp price increases.

“Even if (coal) stabilizes to $80 (per metric ton) it doesn’t mean ‘cheap’ energy is there to stay. That’s why we’re pushing very hard for geothermal to happen; because if you make it happen, it provides stable, base load, and clean energy,” he said.

The use of geothermal, an indigenous energy source, also helps the government save on foreign exchange that otherwise would pay for imported fuel sources like coal, the EDC head said.

As the country’s largest geothermal energy producer, the company continues to focus on developing geothermal and other renewable energy sources.

This reflects the company’s recognition of the need to lessen the build-up in the atmosphere of more carbon dioxide and other greenhouse gases that are blamed for global warming and climate change, Tantoco said.

Earlier, the National Geothermal Association of the Philippines (NGAP)—which EDC is a member of—pushed for incentives for small-scale geothermal projects to allow the power source to compete with conventional fuel such as coal.

Incentives could be in the form of a feed-in tariff (FIT) rate. Currently, the FIT scheme provides as 25-year fixed rate for developers building solar, wind, hydropower, biomass and ocean technology.