Geothermal leader Energy Development Corporation (EDC) assumed operations of the 112.5-MW Tongonan 1 and 192.5-MW Palinpinon geothermal power plants on October 23 after paying PSALM P3.9 billion representing 40 percent of the purchase price and $7 million for the purchase orders, rental, option price, performance security deposit on land lease, and industrial all-risks insurance policy and comprehensive general liability. For the remaining balance, EDC is tapping PSALM’s staple financing scheme allowing for deferred payments of up to seven years in 14 equal semi-annual installments.
EDC Chairman Oscar Lopez receives the symbolic keys to the Tongonan and Palinpinon geothermal power plants from PSALM President Jose Ibazeta.
EDC, through Green Core Geothermal, Inc. (GCGI), acquired the two plants located in Leyte and Negros Oriental in an auction conducted by PSALM last September 2 when it submitted the highest complying financial bid of $220 million. GCGI is a subsidiary of First Luzon Geothermal Energy Corp. which is wholly owned by EDC.
“The acquisition of NPC’s geothermal power plants is one of our major platforms for future growth. We have set our target and achieved it. The turnover of the Tongonan and Palinpinon power plants fully integrates the value chain of EDC’s geothermal business from steam production to power generation. And with the industry leaning more towards clean energy, EDC, with its 33-year head start in the geothermal business, is well positioned to address the supply shortage in the Visayas grid by providing cheaper and green power,” GCGI President Paul Aquino said.
Situated in Sitio Sambaloran, Barangay Lim-Ao, in Kananga, the Tongonan geothermal power plant consists of three 37.5-MW units which went into commercial operations in 1983. It uses steam supplied by EDC’s Leyte Geothermal Production Field (LGPF).
The Palinpinon plants, on the other hand, consist of two power stations – Palinpinon I and II – which are approximately five kilometers apart. Commissioned in 1983, Palinpinon I comprises three 37.5-MW steam turbines for a total rated capacity of 112.5 MW. Palinpinon II consists of three modular power plants: Nasuji, Okoy 5 and Sogongon. The 20-MW Nasuji was commissioned in 1993 while the 20-MW Okoy 5 went onstream in 1994. Started in 1995, Sogongon consists of the 20-MW Sogongon 1 and 20-MW Sogongon 2. All plants use steam supplied by EDC’s Southern Negros Geothermal Production Field (SNGPF).
The two plants boost EDC’s current portfolio of geothermal power generation assets to 1,049 MW. In Leyte, EDC operates the Unified Leyte plants consisting of the 125-MW Upper Mahiao, 232.5-MW Malitbog, 180-MW Mahanagdong and 51-MW Optimization plants. In Mindanao, EDC runs the 106 MW Mindanao 1 and 2 plants. EDC’s first fully-owned power plant is the 49-MW Northern Negros geothermal plant in Negros Occidental. In addition, EDC acquired 60 percent equity in First Gen Hydro which operates the 100-MW Pantabangan and 12-MW Masiway hydroelectric plants in Nueva Ecija.
The Energy Development Corporation (EDC) is a pioneer in generating 100% clean, renewable, and reliable power as an electricity supplier in the Philippines for over 40 years. With power plants all over Visayas and Mindanao, the company is one of the biggest producers of geothermal energy in Asia and is expanding its reach in the international market, allowing it to offer customers affordable energy rates. EDC also strives to provide the best customer service it can to all its clients by having helpful salespeople and easy to understand contracts. Because of all of this, it is poised to become the premier supplier of electricity for the Philippines’ Green Energy Option Program. EDC takes its mission as a renewable energy provider seriously and goes beyond sustainability by investing in programs that enhance the environment and empower its partner communities, thereby fostering regenerative development. The company has also been working toward being carbon-neutral by improving its energy efficiency, as well as implementing various greening projects to ensure that its mission to provide future generations with a better life remains intact.
