EDC looks at four growth areas for power portfolio expansion

MANILA, Philippines – Lopez-controlled Energy Development Corp. (EDC), the world’s top geothermal power producer, is looking at four growth areas to expand its power portfolio until 2020, a company official said.

“EDC has identified four platforms for renewable energy growth that will increase capacity by 26 percent in 2016 and additional 33 percent by 2020,” said EDC senior vice-president Agnes de Jesus.

The company’s growth will focus on expanding local operations and exploring new opportunities abroad.

To date, EDC has an installed geothermal capacity of 1,130 megawatts (MW) and 132 MW for hydropower. Hence, it can hit close to 1,600 MW of generating capacity by 2016.

The four growth areas are acquisition of government-owned power assets, greenfield projects, diversification into other renewable projects and overseas expansion, De Jesus said.

She said EDC wants to pursue five expansion projects from its existing steamfields.

Greenfield projects will push through given the Department of Energy’s awarding of frontier status for five areas.

“For the next five years, EDC will push for six potential greenfield projects with a total capacity of 200 MW by 2016-2017,” De Jesus said.

The new geothermal projects are Bacon-Manito 3 and Kayabon in Albay and Sorsogon, Mindanao 3 in North Cotabato, and Nasulo and Dauin in Negros Oriental.

The power producer is also looking at the Burgos wind project in Ilocos Norte as part of its portfolio diversification.

EDC is into the advanced development of the 86-MW Burgos wind project. It is also in active exploration of frontier wind and solar opportunities, De Jesus said.

Given its expertise, EDC is ready to expand overseas particularly in Africa, Latin America and Asia.

In February, EDC and Hot Rock Ltd. of Australia signed an agreement to acquire four geothermal projects in Chile (Calerias and Longavi) and Peru (Quellaapacheta and Chocopata). However, EDC dropped the Calerias and Longavi projects last July as the projects were deemed not feasible.

“Beyond Hot Rock, we are looking at other concessions. There are offers and we are looking at it,” De Jesus said.

She said EDC is waiting for government auctions for geothermal projects in Kenya and Indonesia.

“A lot of overseas development agencies are looking at how to fasttrack Indonesia’s geothermal [industry] by looking at the policies,” De Jesus said.

The power firm posted a net income of P5.7 billion in the first half, reversing the P2.3-billion net loss in the same period last year due to better operations of its power generation units.