DOE Scrutinizes $5-B EDC Takeover Bid for Power Supply Impact

MANILA, Philippines — The Department of Energy (DOE) is closely monitoring the potential impact on the country's power supply of a $5-billion bid by Indonesian conglomerate Barito Group to acquire the Philippines' largest geothermal power producer, Energy Development Corp. (EDC). "So we are looking at what the impact of that would be. I just have to check what their deal is," Energy Secretary Sharon Garin said, referring to the proposed takeover of EDC. First Gen Corp., EDC's parent company, confirmed last week that PT Barito Renewables TBK (BREN), a unit of Barito Group, had submitted an unsolicited, indicative, and non-binding offer to acquire EDC. The proposed deal remains subject to due diligence and regulatory approvals. While the transaction is still in its preliminary stages, Garin assured that the DOE would ensure the potential takeover does not disrupt the nation's power supply. Should the deal proceed, the DOE will also require the new owner to adhere to the government's energy plan and support the expansion of geothermal and renewable power projects. "They (parties) haven’t presented it (proposed deal) to us formally, so we’ll just wait," the energy chief added. EDC and its subsidiaries currently own and operate geothermal, wind, and solar power plants with a combined installed capacity exceeding 1,400 megawatts. Notably, the company's portfolio accounts for over half of the Philippines' total geothermal capacity. Geothermal facilities play a crucial role in the country's energy security by providing clean baseload power, essential for meeting continuous demand. Garin stated that if BREN's acquisition of EDC leads to increased geothermal investments in the Philippines, it would be a "welcome change," provided all legal requirements are met. EDC, acquired by First Gen in 2007, emerged during the early 1970s oil crisis and has since established the Philippines as a significant player in global geothermal development. The Philippines was once the world's second-largest geothermal producer, a position it held until Indonesia surpassed it in 2018.