Lopez-led Energy Development Corp. is planning a 90-megawatt geothermal expansion in its Sorsogon concession area, aligning with the government’s ambition to become the country’s largest geothermal producer.
The expansion comes after EDC, the renewable energy subsidiary of First Gen, inaugurated its 22-megawatt, P7-billion Tanawon Geothermal Power Plant on Friday.
“Here in the Bac-Man area, we are looking at another 50 MW. We’re exploring another 40 MW, so hopefully, about 90 MW more of geothermal capacity,” said Jerome Cainglet, EDC president and chief operating officer.
Cainglet said the expansion would require investments of $6 million per megawatt and take about five to six years to develop.
The Sorsogon area currently has an existing capacity of 190 MW, including the newly inaugurated Tanawon project.
“Crucially, Tanawon (and Palayan-Bayan, for that matter) helps address our country’s major concern over energy security as it will deliver additional, reliable, 24/7 baseload renewable energy to the country. Plants like this reduce our country’s reliance on imported fuels,” said Francis Giles Puno, First Gen president. “This is why we, at First Gen, will strive to do more of these kinds of renewable energy projects to specifically highlight the wonders of sustainably harnessing the earth’s heat through geothermal energy.”
Located in the Bicol region’s Bacon-Manito (Bac-Man) geothermal facility, Tanawon reflects EDC’s dedication, technical expertise and perseverance in sustainably harnessing the country’s rich indigenous geothermal resources.
Geothermal energy is considered a key pillar of the National Renewable Energy Program, which aims to increase the share of renewables in the country’s energy mix to 50 percent by 2040.
Energy Secretary Sharon Garin expressed hope the Philippines can still become the largest geothermal producer in the world by encouraging more geothermal development such as the Tanawon project.
The Philippines is currently the third-largest geothermal producer worldwide, behind Indonesia (second) and the U.S. (first). The Philippines ranked second in 2015 before sliding to third in recent years.
Garin, however, noted that geothermal development carries significant risks that need to be addressed.
“The risk is very high so we are trying to study how we can reduce the risk by up to 50%, de-risk it,” she said.
The Department of Energy is working with the Asian Development Bank on a geothermal de-risking program, which they hope to roll out next year.
