EDC to proceed with 100MW hydro project in Nueva Ecija

Lopez-led Energy Development Corporation (EDC) is set to push through with the development of the 100-megawatt (MW) Aya hydroelectric project in Nueva Ecija.

“We are excited to issue a notice to proceed for our Aya pump hydro project that will be a first of its kind in the north of the Philippines,” EDC President and COO Richard Tantoco said during the listing ceremony for its Php5-billion ASEAN green bonds at the Philippine Dealing & Exchange Corporation (PDEx) on Friday. 

Tantoco said that even though it is a hydro project, it has the ability to respond and become like the largest battery system that the Philippines will have. 

“[It] is important to allow more wind and solar into the grid, but unlike traditional lithium ion battery systems that have a typical max discharge of three hours, the Aya project can easily discharge over eight to 12 hours– supporting the grid when it is needed the most,” Tantoco said.

EDC listed Php5 billion worth of ASEAN green bonds in the PDEx, an issuance that was more than 10 times oversubscribed compared to its initial issue size of Php3 billion, due to the strong demand from investors for the first tranche bond. 

This is the first tranche to be issued out of its Php15 billion ASEAN green bonds shelf registration. The first tranche bonds were priced at the lowest end of the range at 2.8565% and 3.7305% of the 3-year and for the 5-year series, respectively.

Earlier, EDC said it will use the Php15 billion in proceeds from the green bonds for the expansion of its power plants, particularly geothermal. 

The proceeds will also be used to fund the firm’s geothermal growth and maintenance capital expenditure projects, some of which are allocated for the Palayan Bayan binary project and Mindanao III binary project, which are now both under construction. 

“Through the ASEAN Green Bonds, the public is able to support and participate in financing renewable energy projects, which is aligned with our mission of forging collaborative pathways for a decarbonized and regenerative future,” Tantoco said.

EDC is the largest renewable energy company in the country, operating 1,186MW of geothermal, 150MW of wind, 132MW of hydroelectric power, and 12MW of solar power plants– a total of 1,480MW of clean and renewable energy.