EDC eyes Bac-Man’s 90-MW expansion

EDC eyes Bac-Man’s 90-MW expansion | Daily Tribune

Lopez-led power firm Energy Development Corp. (EDC) plans up to 90 megawatts (MW) of additional geothermal capacity in its Bacon-Manito (Bac-Man) geothermal facility, with exploration and development works now underway.

“Here in Bac-Man, there is a potential of 50 MW, and as we further explore, we see a potential of another 40 MW. Hopefully, we can expand by another 90 MW,” EDC president and chief operating officer Jerome Cainglet said in a recent interview.

In addition to the expansion, the company is also building a 20 megawatt-hour (MWh) battery energy storage system in the area, which is slated to begin operations next year.

Dev’t cost remains high

The cost of geothermal development remains steep, with Cainglet estimating capital requirements at around $6 million per MW, excluding the risk of dry wells or unsuccessful drilling.

“Usually, to put up a facility, you would need around $6 million per MW, but that’s assuming you succeed,” he said.

Energy Secretary Sharon S. Garin acknowledged the high upfront costs and drilling risks that hinder geothermal development, noting that the government is working to reduce these barriers and ensure long-term market viability.

She said the Department of Energy (DoE) aims to complete key policy frameworks within President Marcos’ term to support sustained geothermal expansion.

“We are trying to study how to reduce their risks because they need to be given protection. What EDC or any similar company that wants to start a geothermal project really needs is to support the government in its policy,” Garin said.

To recall, the DoE, in partnership with the Asian Development Bank and with support from the Department of Finance and the National Economic and Development Authority, is pursuing a geothermal de-risking program to address high upfront exploration costs and attract private sector investment.

The loan will fund initial exploration activities to reduce financial barriers and revive stalled geothermal development. Despite its steep capital requirements, geothermal energy is considered a stable and cost-effective source of baseload power in the long term.

The government targets to install 52 gigawatts of renewable energy capacity by 2040.

While solar and wind will dominate growth, a diverse mix including hydro and geothermal is seen as vital to reduce reliance on imported liquefied natural gas.