EDC enters lower-spend phase with P19-billion 2026 capex

By Sheldeen Joy Talavera, Reporter

ENERGY Development Corp. (EDC) has set a capital expenditure (capex) budget of P19 billion for 2026, lower than this year’s allocation, as the company scales back drilling activities following several years of heavy investment in geothermal growth projects.

Speaking on the sidelines of the 2025 Sustainable Energy Awards on Tuesday, EDC Senior Vice-President and Chief Financial Officer Erwin O. Avante said the company is entering a less capital-intensive phase after an aggressive drilling program.

“In the last two years, our capex was very heavy in terms of drilling and growth projects,” he said. “Next year, we are winding down on drilling.”

The planned 2026 capex is below the roughly P30-billion budget earmarked for 2025, which was largely allocated to drilling activities and the development of new geothermal capacity.

EDC plans to drill six geothermal wells next year to support steam production and potential capacity additions. This compares with 12 wells drilled in 2025 and 24 wells in 2024.

In August, the company inaugurated its 22-megawatt (MW) Tanawon geothermal power plant in Sorsogon, which is expected to generate about 159,000 megawatt-hours of electricity annually.

The Tanawon facility is the second of seven growth projects in EDC’s pipeline, following the commissioning of the 29-MW Palayan binary geothermal power plant in July 2024.

EDC, the renewable energy unit of Lopez-led First Gen Corp., has a total installed capacity of 1,388.8 MW, accounting for about 20% of the Philippines’ total renewable energy capacity.

Since 1976, the company has developed geothermal facilities across Bicol, Leyte, Negros Island, and Mindanao. It also operates wind and solar assets in Burgos, Ilocos Norte, and hydroelectric plants in Nueva Ecija.

Outside the Philippines, EDC has expanded into Indonesia through a partnership with PT DSSR Daya Mas Sakti, a local geothermal energy firm.

Under the agreement, the companies aim to develop geothermal resources with a combined potential capacity of up to 440 MW across several sites in Indonesia.

Mr. Avante said EDC expects to begin identifying prospect sites next year for the development of two geothermal projects under the partnership.