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, should the transaction proceed.
Energy Secretary Sharon S. Garin said 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.
EDC supplies roughly one-fifth of the Philippines’ installed renewable energy capacity, primarily through geothermal plants in the Visayas and Mindanao.
Garin said the department’s role would be to ensure power supply remains stable and that any new owner follows the national energy plan to expand geothermal and renewable output.
She described the possible acquisition as 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 Star Energy Geothermal, Indonesia’s largest geothermal producer.
The Philippines operates 1,952 megawatts of installed geothermal capacity, ranking as the world’s third-largest geothermal producer behind the United States and Indonesia.
To support sector growth, the Economy and Development Council recently approved a P10-billion geothermal resource de-risking facility aimed at lowering exploration risks.
Geothermal power provides stable baseload electricity, but high upfront exploration costs remain a barrier to commercial viability.
