Energy Development Corp. (EDC) has turned over P29.1 million to the communities and local government units (LGUs) hosting its 130-megawatt (MW) geothermal power plant in the Bicol region.
Of the amount, P7.74 million will be used for the much-needed Covid-19 plans and projects of the local governments, P10.68 million will be allocated for the Development and Livelihood Fund and the remaining P10.68 million will be for Reforestation, Watershed Management and Environment Enhancement fund.
Based on the Energy Regulations 1-94 of the Department of Energy (DOE) Act of 1992 and Electric Power Industry Reform Act of 2001, power generation companies are mandated to turn over P0.01 per kilowatt-hour of their total electricity sales as a financial benefit to the host communities. Of the total amount, 50 percent of the one centavo is for the electrification fund of the concerned distribution utilities; 25 percent is for development and livelihood fund and the remaining 25 percent is for reforestation, watershed management, health and/or enhancement fund of the host LGUs.
However, in April 2020, the DOE issued a circular allowing the use of ER1-94 program funds for the Covid-19 response of host communities to energy generation firms.
Following the guidelines set by the DOE, P10.16 million and P18.19 million were downloaded to the Albay and Sorsogon LGUs, including its municipality, city and barangays that host EDC’s Bacon-Manito geothermal plant that straddles Albay up to Sorsogon City.
“Beyond complying with rules and regulations set by the authorities, EDC is more than happy to provide not only clean and uninterrupted power to the grid but also to share its blessings for the renewable power it harnesses from the ground. We believe that the benefits we bring to the community is our responsibility and is part of our commitment to our revitalized mission of forging collaborative pathways for a regenerative and decarbonized future,” said Atty. Allan V. Barcena, EDC Assistant Vice President and Head, Corporate Social Responsibility and Public Relations.
EDC’s BacMan 1 and 2 sites, with 110 MW and 20 MW capacity, respectively, have been providing power to the Luzon and Visayas grid since the 1990s.
EDC is the largest pure renewable energy company in the Philippines, operating 1,186 MW of geothermal, 150 MW of wind, 132 MW of hydroelectric power, and 12 MW of solar power plants–for a total of 1,480 MW of clean and renewable energy.
It accounts for 19 percent of the country’s total installed renewable energy capacity, and comprises 62 percent of the country’s total installed geothermal capacity based on the Philippines’s 2020 total installed capacity figures as published in the DOE 2003-2020 Power Statistics report. It has put the Philippines on the map as the third largest geothermal producer in the world.