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Energy Development Corp. (EDC) is moving ahead with the expansion of its geothermal portfolio after securing key government clearances to explore two new project sites in Luzon, signaling renewed momentum in the country’s long-running pursuit of clean, baseload energy.
The Department of Energy (DOE) has granted EDC certificates of authority to conduct preliminary assessments for the 100-megawatt Buguias-Tinoc project, spanning Benguet and Ifugao provinces, and the 20-megawatt Mt. Sembrano project in Rizal and Laguna.
These certificates serve as a regulatory prerequisite for developers, allowing them to secure environmental and local permits, carry out technical surveys, and perform pre-feasibility studies before full construction begins.
Under DOE guidelines, the authorizations issued through the government’s Open and Competitive Selection Process (OCSP4) held in 2023 are valid for three years, giving developers time to de-risk projects and address land-use or community concerns.
Reinvesting In Core Geothermal Assets
EDC’s latest approvals come as the Lopez-led firm ramps up investments to modernize its existing geothermal facilities. The company has allotted ₱30 billion to redevelop its flagship complex in Leyte, targeting a stable and reliable capacity of around 700 megawatts within the next three years.
The redevelopment aims to extend the life of aging infrastructure and maintain EDC’s position as the country’s dominant geothermal producer, supporting the national grid with consistent, round-the-clock renewable power.
Geological And Financial Challenges
While geothermal energy remains a core pillar of the Philippines’ clean energy transition, the industry continues to grapple with steep exploration costs and the geological risks of drilling unproductive wells.
To help address these barriers, the DOE and the Land Bank of the Philippines recently launched a ₱22.8 billion credit facility offering lower-cost financing for early-stage exploration, typically the most capital-intensive and uncertain phase of development.
Maintaining Geothermal Leadership
Despite new incentives, EDC executives have warned that the Philippines could lose its global standing as the world’s third-largest geothermal producer without broader government support.
In last year’s Asia Clean Energy Summit in Singapore, First Gen vice president Jay Joel Soriano expressed concern that geothermal energy hasn’t enjoyed broad government backing since it has long been seen as an “old technology”.
Soriano welcomed the recent inclusion of geothermal in the Green Energy Auction Program, which offers fixed tariffs to attract investors, and expressed hope for the rollout of a $250-million de-risking fund for geothermal developers. “If they can help us de-risk that upfront investment, then it will pave the way to more and more developments in the Philippines,” he said.
National Renewable Energy Roadmap
The DOE has reaffirmed that geothermal power remains integral to its renewable energy roadmap, which targets a 35% share of renewables in the power mix by 2030 and 50% by 2040. Expanding exploration beyond established fields in Leyte, Negros, and Bicol is seen as vital to meeting these goals and ensuring grid stability as solar and wind capacity expand.
With new exploration sites opening and modernization projects underway, EDC’s initiatives are expected to reinforce the Philippines’ reputation as a geothermal leader—while underscoring the need for sustained policy and financial support to keep the sector globally competitive.
Source:
https://mb.com.ph/2026/01/05/edc-secures-doe-approval-for-120-mw-geothermal-projects-in-luzon
https://business.inquirer.net/567137/edc-to-invest-p-30b-in-leyte-geothermal-complex
https://business.inquirer.net/555076/geothermal-energy-needs-more-support-first-gen