EDC sets aside P32 B for capex

MANILA, Philippines - Lopez-led Energy Development Corp. (EDC) has set aside P32 billion for its capital expenditures (capex) program this year as it strengthens its foothold in the country’s growing renewable energy industry, the company’s top finance official said.

This year’s capex is P11 billion more than last year’s allotment of P22 billion as EDC, the country’s largest geothermal company, embarks on an ambitious $300-million (P12 billion) wind farm project in Ilocos Norte, said EDC chief finance officer Nestor Vasay.

“Bulk of that will be for the Burgos project,” he said.

EDC is building an 87-megawatt wind farm in Burgos, Ilocos Norte targeted for completion by 2014.

Once operational, the Burgos Wind Project (BWP) is expected to generate approximately 233 gigawatt-hour annually and supply power to over a million households.

The Burgos project is part of the move of First Gen Corp., the parent firm of EDC, to be the country’s leading renewable energy firm.

The company is optimistic of business prospects this year, with revenues expected to hit P30 billion, or P4 billion more than the P26 billion generated in 2012.

Vasay said revenues would come from existing contracts and projects.

“We have these new contracts in Green Core Geothermal Inc. and of course we’re expecting more contributions from BacMan,” Vasay said.

Green Core Geothermal, Inc. is the power arm of EDC while BacMan, or the Bacon-Manito geothermal plant, hosts EDC’s facilities in Albay.

Located in the towns of Bacon, Sorsogon and Manito, Albay, BacMan consists of two plants. BacMan I comprises two 55-megawatt turbines and BacMan II, which has two 20-MW geothermal facilities.

Vasay said the company would start exploring further its international sites later on but for now, it remains focused on the domestic environment.

“We know that there’s going to be a steady growth until 2016 to 2017. That’s when we will start exploring our international sites. So domestically, there’s just so much we can do,” Vasay said.

EDC remains the largest producer of geothermal energy in the Philippines accounting for 62 percent of the total country installed geothermal capacity.

It has also obtained and is developing geothermal concessions in Chile and Peru.