EDC sets aside P12.3B for capital expenditure

Energy Development Corp., the country’s largest producer of geothermal energy, has earmarked P12.3 billion for its capital expenditure this year.

In a regulatory filing, EDC said that of the total capex budget, 48 percent, or P5.76 billion, would be allotted for the 86-megawatt Burgos wind power project in Ilocos Norte.

The decision to pursue the Burgos wind farm, however, would be hinged on the issuance of the final feed-in-tariff rates for renewable energy source, the application for which remained pending to date.

The FIT rates would determine the economic viability of a project, as these assure developers of future cash flows. Under the scheme, electricity end-users will be charged fixed amounts to cover the production of energy from renewable sources.

Government officials are hopeful that the rates would be issued within the year.

In the meantime, 11.6 percent of the total capex budget for this year, or P1.43 billion, will be used for the remaining costs of the rehabilitation of Green Core Geothermal Inc. and Bacman Geothermal Inc., both wholly owned subsidiaries of EDC.

Bacman Geothermal is rehabilitating the 150-MW Bacon-Manito (BacMan) geothermal facilities, while Green Core is repairing the 305-MW Palinpinon-Tongonan power plants so these can run on full capacities.

The rehabilitation of both geothermal complexes, which are expected to be completed within the year, will help shore up power supply and increase the company’s electricity revenue.