LOPEZ-LED geothermal power firm Energy Development Corp. (EDC) plans to invest more than $1 billion in green energy pro-jects over five years from 2011, company president Richard B. Tantoco said yesterday.
The country’s largest geo-thermal energy producer wants to spend around $805 million for new geothermal projects that will generate 230 megawatts (MW) of electricity, and up to $232 million for an 86-MW wind power project, Mr. Tantoco told reporters.
“The expansion will be funded 30:70 — 30% equity and 70% debt,” said Mr. Tantoco, who is also EDC’s chief executive. He said the company also planned to spend P20.6 billion on its existing power facilities.
In May, the company bid $28.25 million at an auction for two state geothermal plants with a combined capacity of 150 MW.
“We are now in a position to decisively move on to our organic expansion after successfully acquiring all the National Power Corp. assets we targeted,” Mr. Tantoco said.
Geothermal power accounts for about a fifth of the power mix of the Southeast Asian country, which is the second-largest producer of geothermal power globally. EDC accounts for about three-fifths of the Philippines’ geothermal capacity.
EDC’s Web site shows its current geothermal capacity is close to 1,200 MW. Its hydro-power projects take its total capacity to close to 1,311 MW. The firm plans to expand capacity to 1,542 MW in the next five years.
EDC is a unit of First Gen Corp., the Philippines’ largest privately held power generation firm.
Mr. Tantoco said net income was expected to be near P8.7 billion this year, more than double 2009’s P3.4 billion, due to higher electricity sales and a bigger power portfolio.
Analysts expect EDC to post net income of P9.2 billion this year, according to consensus estimates.
“Our target is within [analysts’] range for the whole year. Growth will be primarily driven by the increase in sales from our acquisitions,” said Mr. Tantoco.
The company expects the Tongonan 1 and Palinpinon steam field and power plants in Leyte to reach full capacity of 305 MW soon.
Part of the company’s expenditures will be for the rehabilitation of the Tongonan 1 and Palinpinon plants, the 150-MW Bacon-Manito geothermal plant, and several pipeline projects.
EDC Chairman Federico R. Lopez said in yesterday’s briefing the company was looking for “quality of the capacity, and not quantity” in choosing projects.
Other projects to be undertaken are the 86-MW Burgos wind project in Ilocos Norte expected in 2012, the 40-MW Tanawaon and 20-MW Nasulo geothermal projects in 2013, the 50-MW Mindanao 3 geother-mal project in 2014, and the 40-MW Rangas geothermal project and the 40-MW Kayabon geothermal project in 2015.
International projects are not covered by the five-year capital expenditure plan, EDC executives said.
EDC’s first-half net income jumped by 113.7% to P5.74 billion from P2.69 billion in the same period last year due to the strong performance of its power plants.
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