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PhilStar Business

First Gen: No plan to sell EDC

Lopez-led First Gen Corp. is holding on to Energy Development Corp. (EDC), the country’s largest geothermal company, despite a $5-billion (about P315 billion) offer from Indonesia’s Barito Group.

Context & Analysis

The quiet signal here is not merely foreign interest in a Philippine asset, but how much strategic weight geothermal now carries in the regional energy map. For a Lopez-led group such as First Gen, EDC is more than a revenue-producing utility subsidiary. It is one of the few large-scale renewable businesses with baseload characteristics, meaning it can generate power continuously rather than only when the sun shines or wind blows. In a country still balancing electricity demand growth, grid reliability, and climate commitments, that combination makes geothermal unusually valuable.

For Philippine businesses, this matters because stable and competitive power costs are central to industrial planning, logistics, manufacturing, and export competitiveness. A credible overseas offer for EDC also suggests that global investors see the archipelago’s renewable resource base as bankable, which can help anchor long-term capital flows into local energy projects even if a sale does not proceed. For consumers, the broader implication is that preserving domestic ownership of key generation assets may support greater policy room to expand renewables without handing control to outside parties who could reshape investment plans around their own regional portfolios.

The next thing to watch is whether First Gen treats EDC as a long-term strategic holding or as a source of cash for new investments, such as battery storage, solar-plus-storage, transmission partnerships, or electrification projects. Any move would still require shareholder, regulatory, and commercial approvals, and the company’s decision will likely reflect not just valuation but national energy policy, grid needs, and its own portfolio strategy. In short, the offer is less about a transaction and more about what First Gen believes Philippine renewable power is worth in a competitive Southeast Asian market.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: philstar.com

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