Energy Development Corp., the renewable energy arm of the Lopez family’s First Gen Corp., is moving forward with the expansion of its geothermal portfolio after receiving government clearance to conduct preliminary studies on two key sites in Luzon.

The Department of Energy granted certificates of authority for the 100-megawatt Buguias-Tinoc project, spanning the provinces of Benguet and Ifugao, and the 20-megawatt Mt. Sembrano project in Rizal and Laguna, according to agency data.

The certificates function as a critical regulatory precursor, permitting EDC to secure environmental and local permits, conduct technical surveys, and perform pre-feasibility assessments before formal construction begins.

The administrative milestone follows EDC’s success in the fourth round of the government’s open and competitive selection process, known as OCSP4, held in 2023.

Under current Energy Department guidelines, these authorizations are valid for three years. The window is intended to allow developers to de-risk projects and resolve potential land-use or community issues before transitioning into a formal renewable energy service contract.

The expansion comes as EDC aggressively reinvests in its existing aging assets. The company has earmarked ₱30 billion to redevelop its landmark geothermal complex in Leyte. That retrofitting program aims to stabilize and optimize the facility’s output, with management targeting a reliable capacity of 700 megawatts within the next three years.

Geothermal energy remains a cornerstone of the Philippines’ strategy to reduce reliance on imported fossil fuels, yet the sector faces chronic hurdles due to high exploration costs and the geological risks of drilling unproductive wells.

To mitigate these financial barriers, the Energy Department and state-run Land Bank of the Philippines recently established a ₱22.8 billion credit facility. The fund is specifically designed to provide low-cost financing for the capital-intensive exploration phase, which often deters private investment.

While EDC dominates the local landscape, other players are also testing the field. StarPath Power Corp. recently secured its own certificate of authority for the Balatukan geothermal project in Misamis Oriental, though the company has not yet finalized the project’s expected generation capacity.

As of September 2025, government figures show nearly 11 gigawatts of committed renewable energy capacity nationwide, with Luzon accounting for 9 gigawatts of that total.

While the majority of new additions are led by solar and wind, the push for geothermal is viewed as vital for providing the "baseload" renewable power necessary to maintain grid stability.