Philippines’ EDC dismisses sale offer as it invests in further geothermal capacity expansion

First Gen Corp. (First Gen) has expressed that it has no plans of selling its geothermal unit, Energy Development Corporation (EDC), following an unsolicited offer made by Indonesian energy firm PT Barito Renewables Energy. Moreover, the company is doubling down on the growth of EDC, with about PHP 70 billion (approx. USD 1.12 billion) earmarked for capacity increase in its operating assets in Leyte.

In July 2026, Indonesian billionaire Prajogo Pangestu made an unsolicited, non-binding offer to acquire EDC for USD 5 billion. The potential proceeds from the sale would have been double the amount that First Gen invested back in 2007 when it acquired the company from the Philippine government. However, First Gen explains that divesting from its stake in EDC would have meant giving up a stable, long-term source of earnings.

First Gen President and COO Francis Giles Puno further explains that a foreign firm is legally not allowed to hold 100% ownership of a geothermal power company in the Philippines. Current regulations limit foreign ownership at 40%.

Redeveloping the Upper Mahiao geothermal power plant

Puno added that EDC is currently evaluating the construction of a new geothermal power plant at its Upper Mahiao facility in Kananga. As reported in 2025, the 125-MW Upper Mahiao power plant is now being decommissioned after 30 years of operations.

EDC President and COO  Jerome Cainglet said that the company has already filed a proposal to the Department of Energy for the construction of new power plant with an estimated capacity of 200 to 400 MW using the same geothermal resource. The project remains in study, but the company is targeting full commercial operation by 2030 to 2031. About PHP 70 billion (approx. USD 1.12 billion) has been earmarked for this redevelopment.

At a previous press event, Puno further stated new wells are going to be drilled at the Mount Apo geothermal field in Mindanao to restore its output from the current 80 MW the installed capacity of 104 MW. This decision was facilitated by the completion of the Mindanao-Visayas Interconnection Project, a 450-MW grid project connecting Mindanao and Visayas to the main Philippine grid for the first time. This makes the geothermal power output from Mount Apo available to more potential buyers and end-users.

Source: Philippine Star, Manila Bulletin, Forbes, and Bilyonaryo.com