EDC’s new Bicol plant vows relief to tight Luzon power supply

ALBAY — Energy Development Corporation (EDC), Lopez-led First Gen Corporation’s renewable energy arm, is propping up the country’s unstable power supply with its expanded geothermal plant in Bicol now delivering to the Luzon grid.

The P7-billion 28.9-megawatt (MW) Palayan Binary Geothermal Power Plant (PBGPP) is now connected to the power highway, providing much-needed support to the energy sector amid Filipinos’ growing power demand.

Officials present at the inauguration here in the municipality of Manito, said it would serve as a baseload plant, which means it would be delivering power to Luzon around the clock. The PBGPP is an expansion of EDC’s existing Bacon-Manito (BacMan) geothermal facility in the region.

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The PBGPP harnesses thermal energy from brine, a by-product of EDC’s 120-MW Palayan Bayan 1 flash geothermal power plant, to produce electricity. The facility’s gross annual generation is expected to reach 253,000 megawatt-hour (MWh), while net annual generation may hit 219,800 MWh.

“This would be a big help in Luzon since supply is tight, as what we have seen during the summer,” Mylene Capongcol, director at the Renewable Energy Management Bureau of the Department of Energy (DOE), said in a press briefing.

The country, especially Luzon, was placed on red and yellow alerts several times during the dry season as El Niño caused heat waves that prompted a surge in demand. Even with a single power highway now connecting Luzon, Visayas and Mindanao, several generation plants crashed and failed to meet demand, forcing homes to experience rotational brownouts and a surge in their electricity bills.

The National Grid Corp. of the Philippines declares red and yellow alerts if there is insufficient power supply to meet consumer demand.

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“Any capacity that will contribute to the grid will help address our power supply situation,” Capongcol added.

Data from the DOE showed that as of Wednesday, the Luzon grid’s available capacity was at 14,358 MW, while demand reached 12,627 MW.

EDC president and chief operating officer Jerome Cainglet noted the group’s geothermal plants were not sensitive to external shocks, such as global health crises or geopolitical tensions, unlike imported coal and oil.

Cainglet said three more geothermal power plants were on the pipeline: 28-MW Mahanagdong Binary in Leyte, 20-MW Tanawon Binary also in BacMan, and the 5.6-MW Bago Binary in Negros Occidental.

“We expect to put into operation all three by the end of this year,” he told reporters.

EDC has a power capacity of 1,464.5 MW, accounting for almost 20 percent of the country’s installed renewable energy capacity.

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In a message during the event, Energy Secretary Raphael Lotilla said renewable energy companies’ contribution would help the Philippines achieve energy security.

“Every megawatt of additional power that enters the grid is crucial … Further, every additional megawatt of clean, renewable energy that goes online is a vital contribution to our country’s decarbonization goals, as the Palayan Bayan Binary plant is estimated to reduce atmospheric emissions by as much as 72,200 tonnes per year,” the energy chief said.

He said the government would continue to accelerate efforts to attract more investors, including streamlining perks for duty-free importation during a project’s development stage.