EDC allots P19 billion for 2026 capex

MANILA, Philippines — Lopez-led Energy Development Corp. (EDC) is setting aside P19 billion to fund its geothermal expansion in the Philippines and abroad, according to a top executive.

“Our capex (capital expenditure) target for next year is P19 billion,” EDC chief finance officer Erwin Avante told reporters on the sidelines of a recent Department of Energy (DOE) event.

While drilling continues, Avante said the level of activity is expected to taper off compared with previous years.

He also said the company plans to drill new geothermal sites nationwide, including Mindanao.

Similarly, the country’s largest geothermal player is poised to allocate a notable budget to developing geothermal projects in Indonesia, Avante said.

This follows the signing of a strategic deal between EDC and PT DSSR Daya Mas Sakti to harness around 440 megawatts (MW) of geothermal potential in Indonesia.

DSSR is a subsidiary of Jakarta-based PT Dian Swastatika Sentosa, which is part of the Sinar Mas Group, one of Indonesia’s largest and most diversified conglomerates.

“We have six sites between the two of us. We’re looking at developing two of the projects (next year),” Avante said.

EDC is among the recipients of this year’s DOE Sustainable Energy Awards, recognized for its 197.27-MW Bac-Man Geothermal Power Plant in the Bicol region.

The project earned recognition in the renewable energy category for on-grid areas, highlighting its significant role in strengthening a secure, reliable and resilient power sector.

Moving forward, EDC expects the government’s geothermal de-risking facility to play a key role in supporting its expansion efforts.

The facility, targeted to be rolled out next year, aims to offer cost-shared exploration support to developers, potentially covering up to 50 percent of drilling costs through convertible loans.

If drilling efforts are unsuccessful, the funding will be converted into grants to ease the financial strain on developers.

For this purpose, DOE signed a memorandum of agreement (MOA) with state-run Land Bank of the Philippines yesterday to operationalize the de-risking facility supported by the Asian Development Bank.

Under the MOA, DOE will serve as the executing agency responsible for policy direction and governance, while Landbank will act as the facility administrator and manager.

“This partnership with Landbank strengthens our ability to expand clean and dependable power supply, support energy security and advance a just and sustainable energy transition that ultimately benefits Filipino communities,” Energy Secretary Sharon Garin said.