EDC earmarks P17.4 billion for capital expenditures

MANILA, Philippines — Lopez-led Energy Development Corp. (EDC) has allotted over P17.38 billion in capital expenditures (capex) this year.

Based on a regulatory filing, EDC’s capex this year is just two percent higher than last year’s P16.98 billion.

A big chunk of this year’s capex, or P10.9 billion, is allocated for growth projects, primarily composed of investments in FG Hydro, Wind Ilocos Norte business unit, Solar business unit, Latin America, geothermal, wind and solar expansions, and head office.

EDC’s budget for this segment is higher by 31 percent versus the P8.3 billion it allotted last year.

It is  working on the 29-megawatt (MW) Palayan binary plant in Bicol, which is targeted for completion in the first quarter of 2023.

EDC is also completing the 3.6-MW Mindanao 3 binary plant, which is under testing and commissioning with commercial operations to follow.

The company has likewise lined up the 20-MW Tanawon geothermal power plant in Bicol, which will be the expansion of the Bacon-Manito (BacMan) geothermal power plant.

EDC is also continuing the exploration and assessment of growth prospects in Indonesia, Chile, Peru, and other countries in the Asia-Pacific and Latin American regions.

The company is developing the 100-MW Aya pumped-storage project in Pantabangan, Nueva Ecija, which is expected  to become the largest battery system that the country will have, which can discharge over eight to 12 hours of support to the grid.

Meanwhile, more than a third of the capex, or P6.48 billion, is allotted for power plant and steam field reliability improvement.

“It will be for acquisitions to support the operations and maintenance requirements of the geothermal plants in Leyte, Negros Island, Bacon-Manito, and Mt. Apo,” EDC said.

The budget for the steam field-related activities this year is lower by 25 percent compared  to the P8.68 billion alloted in 2021.

Last year, EDC incurred higher power plant and steam field maintenance expenses as a result of deferred activities from 2020.

The company operates three geothermal steam field projects in Leyte, which deliver steam to the 123 MW Tongonan geothermal power plant, and the 603.7-MW Unified Leyte geothermal power plants.

It operates two geothermal steam field projects in Southern Negros, delivering steam to the 172.5-MW Palinpinon geothermal power plants, and the 49.4-MW Nasulo power plant.

In Bacon-Manito, Albay and Sorsogon, the company operates two geothermal steam fields which delivers steam to the 130-MW Bacman geothermal power plants owned through Bac-Man Geothermal Inc.

EDC operates one geothermal steam field project in Kidapawan, Cotabato, which powers the 103.2-MW Mindanao geothermal power plants in Mt. Apo.

First Gen Hydro Power Corp. (FG Hydro) operates the 132-megawatt (MW) Pantabangan hydroelectric power plant in Nueva Ecija.

Through its wholly owned subsidiary EDC Burgos Wind Power Corp. (EBWPC), it owns and operates the 150-MW Burgos wind energy project, and the 6.82 MW Burgos solar project (phases 1 and 2).

It also holds 12 wind energy service contracts with the Department of Energy. Each WESC has a contract period of 25 years and will expire between 2034 and 2046.

Meanwhile, wholly owned subsidiary EDC Siklab Power Corp. operates solar rooftop systems in various Gaisano Capital malls located in the provinces of Iloilo, Aklan, Leyte, Southern Leyte and Sorsogon.

EDC is the largest pure renewable energy company in the Philippines, operating a total of 1,476.6 MW of clean and renewable energy from geothermal, wind, hydroelectric and solar.

It accounts for 19 percent of the country’s total installed renewable energy capacity and comprises 62 percent of the country’s total installed geothermal capacity, which put the Philippines on the map as the third largest geothermal producer in the world.