EDC to drive development on five more geothermal plants
EDC driving development on 5 geothermal power plants that could potentially add more than 200 MW in the company's existing concession areas in Dumaguete, Negros Oriental (for Palinpinon), Mt. Apo, Southern Leyte and in Legaspi/Sorsogon (for Bacon-Manito).
Reported locally, “Energy Development Corp. (EDC) will put up several “greenfield” geothermal power plants to increase its capacity by another 200 megawatts—a move that could propel the company to become the world’s biggest geothermal producer.
In an interview with the Inquirer, EDC president Richard B. Tantoco said the Lopez-led firm was about “70-74 MW away from being the No. 1 geothermal producer in the world, and that’s very rare for a Philippine company to be able to say that.”
EDC ranks second to Chevron in terms of geothermal capacity.
“We’re looking at greenfield growth within our five concession areas [awarded by] the Department of Energy and within those, we have the opportunity to grow another 200 to 220 MW,” Tantoco said.
Although he did not disclose the planned investments for the five power plants, Tantoco said they may have to pour in anywhere between $1.5 million and $2.5 million to generate a megawatt of geothermal energy.
This means that for a combined 200-MW capacity, EDC has to invest as much as $500 million or about P23.5 billion (at P47 to a dollar) over the next several years.
“The power plants will have 20-, 40- or 50-MW capacity and within 36 months, some of those would already be up. We’re already doing the drilling now, we’re drilling the wells,” he added.
Tantoco said the proposed facilities would be built within EDC’s existing concession areas in Dumaguete, Negros Oriental (for Palinpinon), Mt. Apo, Southern Leyte and in Legaspi/Sorsogon (for Bacon-Manito).
He added that the company was prepared financially for the new projects.
The company is offering up to P12 billion worth of fixed-rate bonds and has already raised P9 billion from a peso-denominated private placement conducted earlier this year. Another P8 billion is expected to come in the form of internally generated cash.
Tantoco said the balance sheet of EDC was healthy as it could take an additional P29 billion in loans if and when needed.”
Source: Philippines Inquirer