MANILA, Philippines — Energy Development Corp. (EDC), the renewable energy subsidiary of First Gen Corp., is not pushing through with its plans for geothermal development in Peru.
In a stock exchange filing, the Lopez-led geothermal energy company said the board of directors and stockholders of subsidiary Energy Development Corp. Peru S.A.C. have decided to no longer pursue exploration and development activities in Peru.
Cited by the company as reasons for its decision are “political and market factors.”
Peru is one of the countries that EDC has earlier identified as among those which the company is exploring and assessing growth prospects for geothermal power.
EDC is also pursuing several local expansion projects across the Philippines.
These local projects include the 28.9-megawatt (MW) Palayan binary project in Albay, which is targeted for commercial operations by September.
Two projects, meanwhile, are eyed to be finished by 2024.
These are the 21.35-MW conventional power plant that uses a single-flash geothermal turbine generator within the BacMan concession and the Northern Negros geothermal project, a 5.6-MW plant within the Northern Negros concession.
The Mahanagdong geothermal brine optimization power project, a 28-MW plant within the Leyte concession, meanwhile, is targeted for completion by the third quarter of 2025.
Of First Gen’s $1.1 billion capital expenditures earmarked for this year, $403 million is allocated for geothermal projects under EDC.
As a renewable energy producer, which accounts for almost 20 percent of the country’s total installed renewable energy capacity, EDC also provides 61 percent of the country’s total installed geothermal power.
The company is also responsible for putting the Philippines on the map as the world’s third largest geothermal producer and has been providing a reliable supply of clean power to Luzon and Visayas for almost 40 years.
The company is committed to advancing sustainability by employing new technologies to reduce its environmental footprint while optimizing operations.
Geo 24/7 is EDC’s own brand of geothermal energy that has been providing the country that much needed clean, low carbon power all year round.