By Benjamin Cuaresma
MANILA — The Department of Energy (DOE) has signaled it will subject the proposed $5-billion takeover of Energy Development Corp. (EDC) by Indonesia’s PT Barito Renewables Tbk (BREN) to scrutiny, emphasizing that any change in ownership of the country’s largest geothermal producer must not compromise the Philippines’ energy security.
Energy Secretary Sharon Garin said the agency is monitoring developments surrounding the unsolicited acquisition offer, stressing that regulators will carefully examine its implications before any transaction is allowed to proceed.
“We are looking at what the impact of that would be. I just have to check what their deal is,” Garin said, noting that the proposal has yet to be formally submitted to the department.
The planned acquisition came to light after First Gen Corp., the Lopez family’s power generation company, disclosed that it had received a non-binding and indicative proposal from BREN to purchase EDC. The company, however, clarified that negotiations remain in the preliminary stage, with no formal agreements executed and no advisers appointed for the potential deal.
While discussions are still in their infancy, the DOE said it would closely assess whether the transaction could affect the country’s electricity supply, particularly since EDC remains a major pillar of the Philippines’ renewable energy sector.
Government regulators are also expected to ensure that any new owner adheres to the country’s energy development agenda, including commitments to expand geothermal capacity and accelerate investments in renewable energy infrastructure.
“They haven’t formally presented the proposal to us, so for now we are waiting,” Garin said.
EDC currently operates one of the country’s largest renewable energy portfolios, with geothermal, wind and solar facilities capable of generating more than 1,400 megawatts of electricity.
Its geothermal assets are particularly significant, accounting for over half of the Philippines’ installed geothermal capacity and supplying dependable baseload power that helps stabilize the national grid even as demand fluctuates.
Garin said the government would welcome fresh capital and technology if the acquisition translates into greater investments in geothermal development, provided the transaction fully complies with Philippine laws and regulatory requirements.
Established in response to the global oil crisis in the 1970s, EDC has become a cornerstone of the country’s clean energy industry and has played a major role in positioning the Philippines as one of the world’s leading geothermal power producers.
Although Indonesia overtook the Philippines as the world’s second-largest geothermal energy producer in 2018, EDC continues to represent one of the nation’s most valuable strategic energy assets.
With the proposed acquisition drawing international attention, the DOE underscored that protecting the country’s long-term energy independence and ensuring uninterrupted power generation will remain at the center of the government’s review process.
ia/xf
