EDC Takes Over Mindanao Geothermal Power Plants

Energy Development Corporation (EDC) continues to boost its current portfolio of power generation assets as it assumes full ownership and operation of the 52-MW Mindanao 1 and 54-MW Mindanao 2 geothermal power plants.

EDC President/CEO Paul Aquino and MESC President Ryukichi Kawaguchi sign the transfer agreement with EDC Chair Oscar Lopez, EDC directors Federico Lopez and Vince Perez and Team Energy President Federico Puno as witnesses.

EDC President/CEO Paul Aquino and MESC President Ryukichi Kawaguchi sign the transfer agreement with EDC Chair Oscar Lopez, EDC directors Federico Lopez and Vince Perez and Team Energy President Federico Puno as witnesses.

Energy Development Corporation (EDC) continues to boost its current portfolio of power generation assets as it assumes full ownership and operation of the 52-MW Mindanao 1 and 54-MW Mindanao 2 geothermal power plants today. The country’s largest integrated geothermal company is taking over operations of the two geothermal power plants, located in Kidapawan City, North Cotabato, from the Mindanao 1 Geothermal Partnership (M1GP), a consortium between Oxbow Power Corporation and Marubeni Corporation, after completion of the cooperation period as per the respective Energy Conversion Agreements (ECAs).

The Mindanao 1 and Mindanao 2 geothermal power plants started commercial operations on March 4, 1997 and June 17, 1999, respectively. In October 2006, EDC and MIGP agreed to extend Mindanao 1 power plant’s BOT contract period to coincide with Mindanao 2 power plant’s turnover.

“The turnover of the Mindanao power plants will fully integrate the value chain of the geothermal business from steam production to power generation, like our Leyte projects. We will be well-positioned to address and benefit from the robust growth in peak electricity demand in the Mindanao grid as we offer cheaper and cleaner source of energy,” EDC President/CEO Paul Aquino said.

Since commissioning, M1GP and M2GP have operated with an average availability factor of 96 percent and 98 percent at an average plant capacity of 91.3 percent and 92.5 percent, respectively. In the recent Mindanao Grid data (2006-2007), M1GP and M2GP generated an average of 10.56 percent of the entire electricity supply in Mindanao.

“The operation of the Mindanao power plants will continue to be efficient with the seamless turnover and fusion of expertise of EDC and Marubeni geoscientists and engineers,” Aquino added.

The Mindanao plants are the last of the BOT plants turned over to EDC. In 2006 and 2007, EDC assumed operations of the Unified Leyte plants from California Energy and Ormat. The Unified Leyte plants consist of the 132-MW Upper Mahiao, 232.5-MW Malitbog, 180-MW Mahanagdong, and 51-MW Optimization geothermal power plants.

EDC remains the country’s leading producer of geothermal energy accounting for 62% or 1,199 MW of the 1,980 MW total installed capacity. It is now positioning itself as the premier pure renewable energy player in the Philippines with its acquisition of a 60 percent equity in the Pantabangan-Masiway hydroelectric project.