ENERGY Development Corp. (EDC) just isn’t engaged in discussions over Indonesia’s PT Barito Renewables Energy’s (BREN) $5-billion proposal to amass the geothermal producer, although the unsolicited offer has not been dismissed, an EDC executive said.
“After all, any company that provides you a suggestion, you wouldn’t just dismiss them,” EDC President and Chief Operating Officer Jerome H. Cainglet told reporters on Wednesday when asked whether the group was considering selling the corporate.
“For now, there aren’t any discussions,” he added.
Mr. Cainglet’s remarks got here about two weeks after Lopez-led First Gen Corp. disclosed that BREN had submitted an unsolicited, non-binding $5-billion offer to amass EDC, its renewable energy subsidiary.
BREN is the renewable energy arm of Indonesian conglomerate PT Barito Pacific Tbk. It holds a majority stake in Star Energy Geothermal, Indonesia’s largest geothermal energy producer.
Mr. Cainglet said EDC had no obligation to reply since the proposal was unsolicited.
EDC is the Philippines’ largest geothermal energy producer, accounting for about one-fifth of the country’s installed renewable energy capability with greater than 1,400 megawatts (MW) from its geothermal, wind, hydro, and solar assets.
The Philippines has an installed geothermal capability of 1,952 MW, making it the world’s third-largest geothermal power producer after the USA and Indonesia.
Mr. Cainglet said the proposal wouldn’t affect the country’s geothermal output because EDC’s generating assets would remain a part of the national power system no matter ownership.
Asked whether Manila Electric Co. (Meralco) could also pursue EDC, Chairman and Chief Executive Officer Manuel V. Pangilinan said the renewable energy company would complement the utility’s expanding clean energy portfolio.
“It’s a renewable, so it may be a superb addition to the renewables of MGEN (Meralco PowerGen Corp.),” Mr. Pangilinan said.
MGEN, Meralco’s power generation arm, operates a 5,068-MW portfolio across the Philippines and Singapore, including thermal, natural gas, solar, and battery energy storage assets.
Mr. Pangilinan said, nonetheless, that Meralco had not held any discussions with the Lopez group.
“We’ll cross the bridge after we construct it, so to talk,” Mr. Pangilinan said. — Sheldeen Joy Talavera