DAVAO CITY – The Energy Development Corp. reaffirmed its commitment to continue supporting the country’s economic and environmental growth by championing renewable energy, reforestation, and investing in local communities, including Mindanao.
At the Davao Media Site Visit at the Mindanao Geothermal Production Field in Kidapawan City on April 4, EDC Corporate Relations and Communications Division head Maria Nancy Ibuna said that they aim to promote clean energy and sustainable progress for the country through its initiatives.
In line with its commitment to sustainability, EDC maintained its firm stance against coal-fired power plants as stated by their chairman Federico R. Lopez of the First Philippine Holdings. He said the FPH and its subsidiaries will not build, develop, or invest in any coal-fired power plant.
Data showed that the First Gen-EDC runs entirely on renewable energy with 1,480 megawatts (MW) of installed capacity, which accounts for 20 percent of the country’s total installed renewable energy and has a 1,185.4-MW geothermal portfolio comprises 80 percent of its total installed geothermal capacity.
Adrian Aragon, a geochemist of the EDC under its integrated sub-service management, said First Gen-EDC has established the Philippines’s top clean energy provider, the third-largest producer of geothermal energy, and the leading vertical integrated geothermal company worldwide.
“EDC is primarily an energy producer, while we focus on power distribution. One key advantage of geothermal energy is its ability to provide spin energy without relying on fuel, coal, or gas. Instead, it harnesses heat directly from the earth, making it a renewable and sustainable energy source,” Aragon said.
Their 2020 data showed that renewable energy accounts for only 25.5 percent of the Philippines’ total power consumption. Geothermal energy makes up 52.9 percent, which, Aragon said, meaning nearly half of the country’s renewable energy supply comes from geothermal sources.
Geothermal power plants are the only type of clean and renewable energy that can provide uninterrupted power round-the-clock, unlike wind plants with 150 MW, solar with 6.8 MW, and hydro with 132 MW, whose output is affected by and dependent on the weather.
The EDC owns and operates three integrated geothermal power stations in Mindanao, apart from the 10 other areas in the country, with an installed capacity of 54.24 MW for Mindanao 1 (M1), 54.24 MW for M2, and 3.66 MW for M3 binary geothermal power plant, all located in North Cotabato province.
Ibuna said with these geothermal facilities in Cotabato, including the M3, the EDC can advance its renewed mission of creating collaborative pathways toward a decarbonized and sustainable future in the region, as the plants also avoid tons of equivalent carbon dioxide each year through the clean geothermal energy.
Aragon emphasized that geothermal energy has a minimal environmental impact. He added that their sites in North Cotabato remain forested because their footprint is significantly smaller than mining operations, as they are committed to preserving the natural ecosystem, including the floral and fauna.
Based on their Power point presentation, the power source company helps reduce carbon emissions. It avoids nearly 5.8 million tons of CO2 per year of operations to mitigate climate change. It also offset 963.852 tons of CO2 since 2008 due to their BINHI forest restoration efforts.
EDC said BINHI has become one of the country’s most widely-recognized privately-initiated environmental programs. It aims to restore denuded forests, preserve and propagate threatened native tree species, and protect biodiversity to leave a legacy of a verdant Philippines for the next generation.
The company launched BINHI in 2008 to sustain its geothermal resource to bridge forest gaps and bring back to abundance 145 flagship endangered Philippine native tree species. Since 1992, the program has planted nearly 950,000 native trees across 1,400 hectares in the Mount Apo Natural Park and five other areas.
At the foot of Mount Apo, the “grandfather of Philippine mountains,” lies the EDC’s 112-megawatt Mount Apo Geothermal Project (MAGP), a model for sustainable development that has been managing 701 hectares of forests since 1997. MAGP has retained 90 percent of the forest cover in its area of operation.
MAGP enables the region to avoid at least 600,000 metric tons of carbon dioxide each year instead of coal. Moreover, its carbon footprint of only 0.02 tons of carbon dioxide per megawatt-hour (tCO2/MWh) is much lower than the Mindanao grid’s 0.29 tCO2/MWh.
The power source company said that over the years, EDC has implemented sustainable forest enhancement programs that have evolved from a social forestry initiative into a science-based forest restoration effort, all while fostering strong community partnerships.
EDC’s program transformed kaingeros (slash-and-burn farmers) into forest stewards by providing training and incentives for forest conservation. The company’s Mount Apo Geothermal Project has preserved 90 percent of the forest cover in its area, helping sequester 972 metric tons of carbon each year.
The Indigenous Peoples/Indigenous Cultural Communities of Mount Apo, particularly the Obo Manovo, as rightful holders of Certificate of Ancestral Domain Title (CADT) outside of the 701 Geothermal Reservation, are also involved in the Social Enterprise Development Program.
EDC initiated the program to provide technical assistance in coffee farming—from farm seedling establishment, plantation establishment, good agricultural practices, and training to create a social enterprise business model from seed to cup where the beneficiaries are members of the IP/ICC of the host community.
The company is fostering progress among the youth in its IP communities through the Mount Apo Foundation, Inc.’s scholarship program for senior high school and college students. Its Community and Environment Program fosters positive relationships with communities in Mount Apo Natural Park, while its Cultural Heritage Program supports the welfare and preserves the culture and traditions of these communities.
EDC continues to contribute to economic development with P32.5 billion worth of value distributed in the form of goods and services, payments to capital providers, taxes, and employee wages, according to 2021 data. They also noted P120-million worth of community investments in 2019.
The Mindanao Geothermal Field is near Mount Apo, the highest peak in the Philippines at 2,954 meters above sea level. The field has three sectors: Sandawa, Marbel, and Matingao, situated in the southeast and northwest. Sandawa contains the hottest area of the field, with temperatures exceeding 300 degrees Celsius.