Our business processes and activities allow us to deliver clean, abundant and renewable energy on a national scale. Each step, from resource management to power generation, is fueled by the commitment to take care of the environment and create a positive impact on the society. The EDC value chain shows a continuum of efforts and investments to harmonize our every action with nature and our communities. Through this, we generate sustainable energy with little impact on the environment while uplifting the lives of our customers, communities and countrymen.
Availability, Reliability, and System Efficiency. EDC has set its target reliability factor at 99% and target availability factors of 94-96% across all power plants. Likewise, we have a set a target of 99% reliability for the transmission lines, and shall continue to construct transmission lines in remote areas and provide power sources at the end of weak grids to comply and support the system reliability requirements of the national grid.
We undertake equipment retrofit on major components to increase efficiency of the units, improve reliability with the use of advanced technologies, provide shorter maintenance duration, improve its potential to operate at a higher capacity, and utilize the replaced equipment as spares. In terms of turbine retrofit, we increase efficiency by optimizing steam consumption. We also aim to address reliability issues of our assets with the use of the latest technologies in steam turbine design. Beyond 2014, we have already lined up projects for turbine and generator retrofit and prioritized assets that require the retrofitting approach.
We regularly conduct maintenance practices but make sure observe two years of planning and preparation prior to the execution of any Major or Minor Planned Maintenance Shutdown. Major planned maintenance shutdown (PMS) takes place every four years while minor planned maintenance shutdown every two years. We usually target an outage duration of 18 days for the major PMS, and 10 days for the minor PMS unless there are emergent or corrective works that require immediate action. We also have long-term General Framework Agreements on major and specialized work such turbine and generator repair, condition assessment and inspection, and the maintenance servicing of plant air compressors, overhead crane, and main generator and compressors.
Research and Development. At the core of our operational excellence is the strength of our research and development. The company seeks to constantly undertake R&D in such innovative areas as improving energy conversion efficiency of power plants, recovering waste heat energy for productive use, and mitigating other energy losses to improve efficiency, reliability, and availability of power and steamfield facilities and equipment.
EDC’s deep commitment to environmental stewardship is beyond compliance. We aim to not only to safeguard the environment but also to actually enhance forests and biodiversity in areas where we operate. By protecting and enhancing the forest cover in our work sites, we ensure the delivery of optimum forest goods and services that not only help in the recharge of the geothermal and hydropower reservoirs but also serve the various publics and industries that are dependent on the watershed.
Materials and Energy. EDC selects products and equipment that do not contain hazardous substances or components in excess of prescribed regulatory limits. We prefers those that can be recycled or reused; use energy efficiently and do not emit pollutants such as excessive smoke, noise, dust, heat, or radiation; and are equipped with anti-pollution devices. EDC also continuously encourages its employees to subscribe to a “paperless” program for internal communications. The initiative is to avoid the use of trees in paper production.
Water. Improved water management is a constant priority and we make sure that we comply with all regulations and standards concerning water use, withdrawals, and discharges in our areas of operation. We address water management at a larger scale, i.e., at the watershed level, with our geographic information system–assisted Watershed Management Plan. Our Water Budget Study, which simulates the water balance contribution at the catchment scale at each geothermal area and assesses our annual discharges, has allowed us to look into a more in-depth hydrological or groundwater study to predict aquifer response to future climatic or land use changes, and better influence our strategic business units (SBUs) in formulating more responsive and strategic watershed management approaches. We also collaborate actively with the external stakeholders for forest protection, forest rehabilitation, and restoration and upland community development. We are in the process of improving program interface and feedback mechanisms for more efficient water monitoring and watershed management.
Biodiversity. A geothermal reservoir can be sustained by a healthy forest environment. Our programs seek to enhance the biodiversity of the project and the concession areas; ensure the positive outcome from the mitigating measures and existing biodiversity conservation efforts against identified biodiversity impacts from the different phases of project development; and improve the company’s reputation as environmental steward. We favor the use of indigenous, premium, species in our reforestation efforts, support a “no hunting policy” within our reservation areas, and protect and create wildlife sanctuaries. We encourage integrated pest management in EDC plant nurseries and plantations, and if absolutely necessary, use them only through applicable operational control procedures.
All company operations are covered by the required forestry permits in compliance with relevant forestry and wildlife laws. We follow an Integrated Management Plan (IMP) and Comprehensive Development and Management Plan (CDMP) for forested areas, and strictly enforce forestry laws within the geothermal reservations as mandated by Executive Order 223 and as part of EDC’s deputized role in managing the watersheds. For monitoring biodiversity parameters, we have permanent forest plots. We use the biodiversity data to enhance our biodiversity management plans and undertake environmental impact assessments. Partnerships with the academe (University of the Philippines – Institute of Biology) ensure greater accuracy and transparency in our monitoring.
Emissions, Effluents, and Waste. Complying with applicable pollution control laws, regulations and standards—such as the Philippine Clean Air Act of 1999, the Ecological Waste Management Act of 2000, the Philippine Clean Water Act of 2004, and the recently institutionalized Executive Order 174 (“Philippine Greenhouse Gas Inventory Management and Reporting System”)—is paramount to EDC. We have groundbreaking mechanisms for a zero-discharge system, continuous air quality monitoring, third-party multi-sector monitoring, and regular training of community members as first responders during emergencies and disasters. We continuously improve our waste management protocols and engage the services only of DENR-accredited third party contractors for the treatment and disposal of solid and hazardous wastes. We equip our personnel and sub-contractors with the appropriate protective equipment and training.
Products and Services. Our goal in the next five years is to have a total capacity of 1,500MW of geothermal power and 200MW generated from wind projects. To support this, we aim to expand from our existing fields in the Philippines, develop green fields locally and secure additional geothermal concessions. We continuously sustain high-quality steam volume to maintain the reliability of our products. We choose suppliers and service providers whose track record and permits are in conformity with EDC’s strict Environmental Management System requirements.
Compliance. Our goal is to maintain zero violations in all our projects, as well as zero environmental fines and penalties. Beyond compliance, we seek new opportunities to reduce risks in the workplace by implementing safe operating procedures, employing clean technologies and waste-minimization strategies, promoting scientific investigations and sound management programs, and guaranteeing emergency preparedness at all times. In this way, we safeguard the health and safety of our employees and the communities where we operate.
Environmental Expenditures. We proactively invest where we make the most difference: environmental performance. EDC annually allocates a budget in support of environmental programs and measures on the upstream side of the business process. Funds are allocated for environmental baseline profiling, impact assessment, licensing, waste prevention and minimization, and monitoring. This commitment finds concrete expression in EDC’s Corporate Environmental Policy and Code of Conduct and Business Ethics.
Supplier Environmental Assessment. Our contract with suppliers mandates the compliance with all existing rules and regulations, including, but not limited to rules on environmental compliance, security, access, safety, health, and hazardous material management. It also requires that contractors take all reasonable precautions to ensure safe working procedures and conditions for performance on company premises. We conduct due diligence on the compliance of potential suppliers with contracts relating to hazardous waste management. The environmental criteria used are: valid environmental permits, licenses and clearances; provisions for proper handling and storage; proper treatment and disposal process; adequate emergency response; provision of trained personnel to manage hazardous wastes; accuracy and completeness of reportorial and certification requirements; compliance with Environmental Monitoring Plan or environmental monitoring schedule and regulatory standards; and overall environmental compliance history.
Environmental Grievance Mechanism. We have a grievance mechanism in the form of internal and external procedures. Specific departments are responsible for handling environmental and socio-economic related complaints received from the stakeholders following the established grievance mechanism. If the complaint has corresponding environmental claims, EDC has mechanics for handling these claims, which are also outlined in the Multipartite Monitoring Team's (MMT) Manual of Operation. To ensure objectivity and transparency, this is handled by the Environmental Guarantee Fund Committee, which consists of MMT members (i.e., representatives from the local community, city and provincial offices, Department of Environment and Natural Resources, Environmental Management Bureau, Department of Energy, a non- government organization, and a People's Organization, as applicable).
The provision of clean renewable power is a critical factor of national development. Thus, our standard for leadership and excellence goes beyond the bottom line. We believe we do good business by doing good.
Throughout our value chain, we deal with various publics and commit to uplifting the lives of our internal and external stakeholders. These partners in social development include our employees, contractors, suppliers, host communities, energy industry alliances, media, the academe, non-government organizations, people’s organizations, local government units, government regulatory agencies, and our customers.
Our employment practices and workplace culture seek to bring out the best in people, and our corporate social responsibility programs conform to international best practices and respond to global investor expectations concerning sustainability. We seek to protect the human rights and enhance development opportunities as we deal with them.
To us, this is what it means for a company to be Powered by Good.
EDC is a global diversified renewable power company. As the world's largest vertically integrated geothermal company, we maintain our leadership in the Philippine renewable energy industry with our portfolio of geothermal, hydropower, solar, and wind power assets. We anchor our growth agenda in a) the acquisition of key government geothermal privatization projects; b) development of existing geothermal capacity; c) diversification of its renewable energy portfolio; and d) the establishment of viable operations in Asia, Latin America, and Africa.
Economic Performance. We maintain healthy cash flows from long-term contract agreements and a strong financial position to fund our portfolio expansion, improve the profitability of energy projects in the pipeline, and ensure regular strong returns to shareholders. We continuously improve our treasury, financial, accounting and budgeting systems to tighten fiscal control, and promote corporate governance and better risk management. We have an extensive capital expenditure program for the optimum availability and reliability of all power generating assets, including the climate proofing of the cooling towers. EDC fully complies with the corporate governances rules and regulations of the Securities and Exchange Commission and the Philippine Stock Exchange (PSE), particularly with PSE's Trading Rules and Restrictions to protect the interest of all shareholders.
Market Presence. Economic prosperity in areas where we operate is a meaningful indicator of how well we contribute to local economic development. It is our policy to directly award the procurement of goods and services to locally based suppliers, continuously build the capabilities of community organizations and cooperatives for economic inclusion, and prioritize qualified applicants from our host communities.
Indirect Economic Impacts. Our Community Partnerships program empowers stakeholders and partner communities to become agents of their own development. We help uplift the standard of living through focused initiatives on health, education, livelihood, and environment; royalty payments for host communities of power projects; direct investments in community projects; and ecosystem services for the preservation of the watersheds in the project sites. Our bi-annual social acceptability survey and CSR key performance indicators monitor the effectiveness of these initiatives and ensure lasting inclusive growth for our partner communities.
Procurement. The quality of suppliers plays a critical role in our success. Supply Chain Management allows EDC to undertake strategic sourcing for uninterrupted supply of goods and services, optimized inventory levels, vendor accreditation, spend analysis and market studies, and warehousing and logistics, among others. Vendor selection is based on factors such as price, technical capability and expertise, compliance with accreditation requirements, financial capacity, safety practices, and long-term sustainability. Because Shared Economic Value is a sustainability focus area, sourcing strategy guidelines promote economic inclusion by providing for local purchasing and direct award to qualified locally based suppliers and contractors. We regularly communicate with our vendors through assemblies held at each SBU, including the Head Office. Regular monitoring and benchmarking are also conducted through internal and external auditing.