EDC plans to start geothermal drilling in Indonesia this year

ENERGY DEVELOPMENT CORP. (EDC) is gaining steam this year as it plans to begin drilling at least one well in Indonesia, the world’s second-largest geothermal producer.

“We hope to start at least one drill at the latter part of this year, and then maybe two or three more next year,” EDC President and Chief Operating Officer Jerome H. Cainglet said on the sidelines of the company’s 50^th anniversary last week.

In partnership with local firm PT DSSR Daya Mas Sakti, the companies will focus on developing and managing geothermal resources with a combined potential capacity of approximately 440 megawatts (MW), across six strategic fields in West Java, Flores, Jambi, West Sumatra, and Central Sulawesi.

For the exploration phase alone, the two companies are looking at investing around $30 million (P1.8 billion), Mr. Cainglet said.

EDC Vice-Chairman and Chief Executive Officer Francis Giles B. Puno said they are planning to start drilling in Java, a volcanic island in Indonesia which is said to have significant geothermal potential.

“If we’re successful, then that will be the first well we will be drilling through our joint venture,” he said.

Philippine geothermal energy capacity is 1,952 MW, making it the third-biggest geothermal producer next to Indonesia.

“To be involved in the second and third largest markets for potential for geothermal, I think that’s a privilege that we cannot waste. It’s an opportunity we cannot waste. So, we have to make sure that we start now,” Mr. Puno said.

For 2026, the company has earmarked a capital expenditure budget of around P19 billion, lower than last year’s allocation, as the company scales back drilling activities following several years of heavy investment in geothermal growth projects.

Mr. Cainglet said the company will focus on harnessing the steam from the wells that resulted from its previous major drilling program.

“Now, what we’re trying to do is to make sure that we get the steam that we targeted to get from there and then be able to drill the wells that will enable us to manage the field properly,” he said.

EDC, the renewable energy unit of Lopez-led First Gen Corp., has a total installed capacity of 1,388.8 MW, accounting for about 20% of the Philippines’ total renewable energy capacity.

Since 1976, the company has developed geothermal facilities across Bicol, Leyte, Negros Island, and Mindanao.

Marking its 50^th anniversary, EDC aims to continue contributing to the country’s energy security goals while leading the way toward “a decarbonized and regenerative future.”

“We don’t stop at 50. We fervently look forward to another 50 years. We will continually strive to provide baseload Geo 24/7 power to the Filipino people, and in doing so, help realize the country’s energy security targets,” Mr. Cainglet said. — Sheldeen Joy Talavera