The Department of Energy said it will assess the potential impact of a proposed $5-billion acquisition of Energy Development Corp., the country’s largest geothermal power producer, if the transaction proceeds.
Energy Secretary Sharon S. Garin stated the agency has not yet received formal notice of the deal but would evaluate any implications for national power supply.
The comments followed a disclosure by First Gen Corp. that it received an unsolicited, non-binding $5-billion offer from Indonesia’s PT Barito Renewables Energy to acquire its renewable energy subsidiary.
EDC accounts for roughly one-fifth of the Philippines’ installed renewable energy capacity, with most output from geothermal plants in the Visayas and Mindanao.
Garin said the department’s role would be to ensure supply remains stable and that any new owner follows the national energy plan to expand geothermal and renewable output.
She noted the acquisition would be a welcome development if it brings fresh investment into the geothermal sector, provided all legal requirements are met.
The Indonesian firm is the renewable energy arm of conglomerate PT Barito Pacific and holds a majority stake in Indonesia’s largest geothermal producer.
The Philippines operates 1,952 megawatts of geothermal capacity, ranking third globally behind the United States and Indonesia.
The Economy and Development Council recently approved a P10-billion facility to reduce risks in geothermal project development.
Geothermal provides baseload power but demands significant upfront exploration investment before a resource becomes commercially viable.
