EDC trims 2026 capital spending budget to P19B

Geothermal energy giant Energy Development Corp. (EDC) has set a capital expenditure (capex) budget of about P19 billion for 2026, marking a step-down from the heavy spending of the past two years.

In an ambush interview on Tuesday, EDC chief finance officer Erwin Avante said the lower capex reflected a shift from aggressive expansion to consolidation following a multi-year investment cycle that had focused on geothermal drilling and capacity growth.

Avante explained that the planned P19-billion capex for 2026 was lower than the roughly P30 billion EDC allocated for 2025, when spending had been driven by intensive drilling and expansion projects.

“In the last two years, our capex was very heavy in terms of drilling and in terms of growth projects,” he said. “So, next year, we’re winding down on drilling. There’s still drilling, but it’s not as much.”

He added that EDC’s pipeline of new capacity additions was also nearing completion.

“In terms of growth projects, our growth projects are almost tapering off,” Avante said, noting that the company had completed seven growth projects over the past three years.

EDC, the country’s largest producer of renewable energy and a global leader in geothermal power, has historically directed a substantial portion of its investments toward resource development. Drilling, in particular, accounts for a significant share of geothermal project costs.

While domestic expansion is slowing, Avante said the company continued to explore opportunities overseas, particularly in Indonesia, where EDC had recently entered into a joint venture.

“In Indonesia, we signed a joint venture agreement. It’s in our hands. We’re looking at developing the sites,” he said.

The initial phase will focus on early-stage exploration, with activity expected to begin next year.

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Avante added that the joint venture currently covered six sites, of which two were being considered for development.

Asked about the scale of potential investments for the Indonesia projects, Avante said cost estimates remained preliminary.

“Right now, I think the working number is P5 million per megawatt … depending on the size. Again, [it’s still] early days right now in terms of putting money.”

The planned P19-billion capex for 2026 underscores EDC’s more measured investment stance following years of capital-intensive expansion.

Moving forward, the company seeks to balance growth opportunities with cost discipline while continuing to position itself in key geothermal markets at home and abroad.