MANILA -Lopez-led renewable energy firm Energy Development Corp. (EDC) has abandoned its geothermal exploration activities in Peru, citing “political and market factors.”
In a disclosure to the Philippine Stock Exchange on Friday, EDC, through parent company First Gen Corp., said the board of directors of its Peru SAC unit had decided to halt development activities in the Latin American country.
This is despite announcing in 2021 that it would continue its geothermal development plans and investment in Peru, Chile and Indonesia while also expanding operations in the Philippines.
EDC, the 100-percent renewable energy firm of First Gen, has several geothermal licenses in Peru and Chile.
In 2020, the company said pre-development activities were stalled for some of its concessions for geothermal exploration in the two countries.
EDC also decided in 2012 that it would no longer pursue its Chocopata exploration project in Peru, as initial assessments showed that existing resources were not viable for power production.
The Chocopata geothermal exploration project was covered by the company’s joint-venture agreement with Hot Rock Ltd. signed in the same year.
It had also opted to drop two exploration projects in Chile in 2012, saying that some areas were “not promising or simply do not have the potential size.”
EDC currently has 1,185.40 megawatts (MW) of capacity in its geothermal portfolio, which accounts for 62 percent of the country’s total installed geothermal capacity.
The Department of Energy recently cleared EDC to conduct a system impact study on six wind power projects in Luzon and the Visayas with a combined capacity of 2,680 MW.
Sought for further comment, EDC head of business development Marvin Bailon told the Inquirer that Peru had been facing “a lot of political instability,” following the impeachment of former Peruvian President Pedro Castillo, who also dissolved the nation’s Congress hours before his ouster.
“As for the market factors, local energy prices have continuously been depressed because of the abundance of energy supply,” Bailon added. INQ