First Gen Integrated Report 2019

Value Creation

Geothermal Performance

Financial Highlights

(In PHP Millions)

EDC’S GEOTHERMAL PLATFORM performed well in 2019. Overall, the platform earned PHP 36.4 billion in 2019, an increase of PHP 3.6 billion or 11 percent from PHP 32.8 billion in 2018. This increase can be attributed to the following:

▷ Recovery of Leyte power plants from the damages caused by Typhoon Urduja in 2017. The power plants resumed normalized operations for the whole year in 2019.

▷ Higher sales from contracts and the spot market led to higher revenues for the Negros and BacMan geothermal plants.

EDC likewise experienced a reduction in operating expenses, resulting in a net income of PHP 11.1 billion. This was PHP 2.9 billion or 34.9 percent higher than PHP 8.2 billion in 2018. The operational expense reduction was due to optimized operational execution. The various cost-saving activities were:

▷ In-housing work.

▷ In-house sourcing of materials.

▷ Streamlining the scope of work.

Operational Highlights

Geothermal facilities collectively produced 7,877.4 GWh in 2019, 537.0 GWh or 7.3 percent higher than 7,340.7 GWh in 2018 despite the challenges in steam availability in the Leyte plants. The challenges the geothermal plants experienced were as follows:


▷ Typhoon Tisoy struck the BacMan plant, slightly damaging the Palayan (BacMan 1) switchyard. The cooling tower walling, cable trays, and access platforms only sustained minimal damage given recent modifications that were made to increase their resiliency against typhoons.

▷ The Leyte plant sustained damage caused by Typhoon Ursula last December 2019. There were damages on the piping of the Leyte FCRS, which was repaired immediately. Its cooling tower only sustained minor damages since its modification.


▷ Mahanagdong well issues that resulted in a steam shortfall.

▷ Extended plant outages of Upper Mahiao Unit 2 and Mahanagdong Unit 1.


▷ Mt. Apo facility was affected by the 6.5 magnitude earthquake last October 31, damaging M1’s main stop valve, some buildings and access roads.

2019 Key Achievements

EDC focused on optimizing the operations of its power plants through upgrades and improvements in plant reliability,
plant efficiency, and implementation of efficient workstream projects.


▷ Palinpinon 2 Upgrades.
The Palinpinon 2 plants had a Control Systems (CS) Upgrade to ensure that the controls are fully responsive and comply with the ancillary service requirements under the 2016 Philippine Grid Code (PGC). Power plant and FCRS (Fluid Collection and Recycling System) controls have also been integrated into a centralized facility control room and were upgraded to improve reliability and overcome obsolescence.

▷ Palinpinon 2 Sogongon Unit 1 and 2 Automatic Voltage Regulator (AVR) Replacement.
These AVRs were replaced as part of an initiative to replace all existing AVRs with ABB (Asea Brown Boveri) Unitrol 6080. This is to ensure that the fleet has a common brand, making it easier to upgrade obsolete AVRs and drive a more strategic spares strategy.

▷ Upper Mahiao Battery Bank Upgrade. 480V Battery banks were replaced with an upgraded design to increase reliability.

▷ Mt. Apo Unit 2 Main Transformer Replacement. The main transformer was replaced since the installed main transformer was already reaching the end of its useful life.

▷ Improvement in Planned Outage Execution.
Eight (8) out of 10 scheduled Planned Maintenance Shutdowns (PMS) were completed in advance with a total of 26.5 outage days saved. The improvement is primarily attributed to a Scheduled Outage Optimization initiative which pushed for planned outage optimization and flawless outage execution.

▷ Project Neptune.
Modifications were made to the Leyte and BacMan plants for better resilience against one-off disasters such as typhoons, landslides, and earthquakes.


▷ Palinpinon 2 Okoy 5 Cooling Tower Upgrade from Wood to Fibre Reinforced Plastic (FRP) Structure. Cooling Towers were upgraded from wood to FRP for better resilience against earthquakes.

▷ Malitbog Unit 3 Cooling Tower Upgrade from Wood to FRP Structure. Cooling Towers were upgraded from wood to FRP for better resilience against earthquakes.


▷ Mahanagdong Unit 1 and 2 Scrubber Replacement.
Reduce entry of solids into the turbine system which may cause foreign object damage to the turbine and/or affect the turbine steam path.

▷ Tongonan Steam Wash System.
Reduce entry of solids into the turbine system which may cause foreign object damage on the turbine and/or affect the turbine steam path.

▷ Tongonan conversion to hybrid Gas Removal System (GRS) using Liquid Ring Vacuum Pumps (LRVP).
LRVPs were installed in the units to allow for a hybridized gas removal process to improve steam conversion efficiency.


Its implementation optimized generation uplift through:

▷ Variable Frequency Drive (VFD) Installation.
The project aims to reduce house load consumption at reduced load capacity. These VFDs were installed in Malitbog Unit 3, Malitbog Bottoming, Mahanagdong, Palinpinon 1, and Palinpinon 2 Okoy 5.

▷ Gas Removal System (GRS) Retrofit.
Liquid Ring Vacuum Pumps (LRVPs) were installed in the units to allow for hybridized gas removal process to improve steam conversion efficiency.

▷ FCRS Optimization.
This is a fleet-wide initiative to maximize and optimize the geothermal resource in the steam field.

▷ Scheduled Outage Optimization.
The project aims to reduce the duration of planned outages from the historical average in order to minimize generation loss by optimizing and squeezing the planned outage schedule.

Creating Value for Stakeholders

EDC remains consistent in how it engages its stakeholders in its various projects. Internally, the company gives its employees greater involvement and accountability for their growth as employees and as individuals. The company also supports its host communities through various initiatives, guided by the Lopez Group’s CSR principles.


Since its establishment, KEITECH has produced more than a thousand graduates in the construction, metal and engineering, and tourism services sectors, with a 100 percent passing rate in all National Certification foundation produced 153 graduates on its 10th year


BINHI is EDC’s nationwide greening program with the goal of restoring denuded forests, preserve and propagate threatened native tree species, and protect biodiversity. In 2019, EDC reforested a total of 100 hectares in three (3) of its sites, bringing the overall reforested area to 9,449 hectares.

Bacon-Manito Geothermal Reservation 24
Mt. Apo Geothermal Reservation 6
Pantabangan-Masiway Hydro Project 70

Strategy for Geothermal

As the country continues its track of becoming sustainably powered by renewable energy supply, EDC will continue to provide clean energy to support and secure uninterrupted power in major regions of the country. With its good track record of power plant availability and reliability, geothermal power remains capable of providing the needed capacity to the grid.

Recognition for Geothermal

EDC’s plants and people were recognized in 2019 at the DOLE 11th Gawad Kaligtasan at Kalusugan (GKK).


EDC’s Mt. Apo facility emerged as one of the regional winners for the industry category, which includes recognition for compliance with general labor and occupational safety and health standards.


Eduardo “Jong” Morales, Jr. and Joel Handugan were heralded as the winners for the individual category, as their efforts were recognized as an outstanding contribution in the area of occupational health and safety.