Jerome H. Cainglet
By Sheldeen Joy Talavera, Reporter
RENEWABLE ENERGY (RE) developer Energy Development Corp. (EDC) is optimistic that it will end the year with a higher bottom line as it begins to reap the benefits of its investments in various power projects, its president said.
“Usually, you don’t give forecast, but definitely, I’m optimistic that it’s going to be higher than last year’s P9 billion,” EDC President and Chief Operating Officer Jerome H. Cainglet said in an interview with BusinessWorld.
For 2024, the company saw its net income decline by 35% to P9.19 billion due to higher recurring operating expenses, lower revenue, and higher financial expenses.
The company is currently focusing on the output of its drilling activities, with 83 megawatts (MW) of geothermal power projects and an additional 40-megawatt-hour capacity of batteries slated for commercial operations this year.
“So, we have more kilowatt-hours to celebrate next year. We’re also looking at investing more in battery storage and getting things going with our greenfield projects like the Amacan project,” he said.
The company is pursuing its first exploration drilling campaign for the Amacan growth project in Mindanao.
EDC, the renewable energy arm of Lopez-led First Gen Corp., has an installed capacity of 1,480.19 MW, representing around 20% of the country’s total installed renewable energy capacity.
Since 1976, EDC has led the exploration, development, and operation of geothermal energy, resulting in the development of geothermal power facilities across Bicol, Leyte, Negros Island, and Mindanao.
It also operates wind and solar farms in Burgos, Ilocos Norte, as well as hydro assets in Nueva Ecija.
EDC has earmarked up to P30 billion for the drilling of 40 new wells through 2026.
Mr. Cainglet said that the company is looking to raise around P27 billion and is already in talks with local and foreign banks for bilateral loans.
“Actually for this year, we’re looking to spend around P18 billion for our drilling program, and I think around P9 billion for growth,” he said.
Around P5 billion is allocated for capital expenditures on operational upgrades and repairs.
While geothermal is deemed the “holy grail” of renewable energy, as it can serve as baseload generation, there are risks involved, as it is uncertain whether wells can produce steam.
“That’s also the reason why not every company has the stomach or the financial resources to enter geothermal. So I think that’s part of the risk the DoE (Department of Energy) would want to help address,” Mr. Cainglet said.
Currently, there is approximately 1,000 MW more of remaining potential geothermal capacity in the Philippines based on the service contracts awarded by the DoE and the indicative potential of the resources.
“There are lots of companies interested in not just working with EDC, providing their services, but also they can partner with us or if we can partner with them for their own RE targets. So we’re always open to that and we don’t close our doors to any such opportunities,” Mr. Cainglet also said.
Asked if the company is looking to acquire new energy assets this year, Mr. Cainglet said that nothing is on the table at the moment.
“Acquiring assets has always been part of growing and if there are opportunities that are present, we would certainly explore them. None at the moment but definitely would explore if there are attractive opportunities,” he said.
As EDC approaches its 50th anniversary in 2026, the company is prioritizing output and efficiency optimization, driving innovation, and strengthening its leadership in renewable energy.
“I’m very excited with EDC. In fact, so last year we were drilling, focused heavily on drilling. Now, we’re reaping the benefits, generating the megawatts, then the next focus would be how else can we enable to generate more megawatts out of the same steam?” Mr. Cainglet said.
He said that they are looking at retrofitting or replacing some old facilities, including its 40-year-old geothermal power plant in Leyte.
