Geothermal Isn't Expensive: The Reservoir Always Has the Final Say Somewhere beneath a volcanic ridge, a drill bit is turning through rock that has not moved in two million years. It costs money every second it turns. And nobody on the surface — not the engineer, not the financier, not the minister who announced the megawatts — knows yet whether that well will produce steam or silence. That single moment explains almost everything people get wrong about geothermal energy. Geothermal is routinely described as expensive, slow, capital-hungry and haunted by drilling risk. Investors are reminded that tens of millions can disappear underground before a single megawatt reaches a grid. All of that is true. But it is not the whole truth. The uncomfortable question the industry keeps avoiding is this: is geothermal expensive, or is the way we develop geothermal making it expensive? Those are two completely different problems. One is geology. The other is us. Why Geothermal Refuses to Be...
Unlocking Green Energy:EDC P10-B Fixed Rate Bonds
Nearly 20 kilometres outside of the city of Ormoc, The Tongonan-1 geothermal power plant sits in mountainous Kananga, Leyte in the Philippines’ typhoon belt. Image: EDC
In a resounding nod to the future of sustainable energy, the board of Energy Development Corp. EDC has given the green light to a groundbreaking initiative. Picture this: P10 billion in fixed-rate bonds earmarked for propelling green energy projects forward. It's not just a financial maneuver; it's a commitment to a greener, cleaner tomorrow.
The Rise of Green Bonds
Lopez-led First Gen Corp. subsidiary, EDC is at the forefront of this movement. Their P10-billion offering marks the second tranche of a larger P15-billion shelf-registered ASEAN green bonds. This isn't just about raising capital; it's about rallying investors behind a cause that transcends profit margins.
The first tranche, a modest P5 billion, saw overwhelming demand, surpassing expectations and sending a clear message: the market is hungry for sustainable investment opportunities. EDC ability to exercise an oversubscription option, raising an additional P2 billion, speaks volumes about investor confidence in their mission.
Fueling the Future
But what exactly does this mean for the future of energy? According to EDC Senior Vice-President and CFO, Erwin O. Avante, these funds will primarily fuel growth projects. With seven ongoing ventures already in motion, including plans to expand geothermal capacity through drilling, EDCis poised to lead the charge towards a renewable energy revolution.
A Greener Tomorrow, Today
Beyond the numbers and financial jargon lies a simple truth: every bond sold represents a vote for sustainability. With an installed capacity of over 1,400 megawatts from renewable sources, EDC isn't just talking the talk; they're walking the walk. And with this latest initiative, they're inviting investors to join them on this journey towards a greener, more sustainable future.
So, what's next for EDC? With the second tranche awaiting regulatory approval, the stage is set for yet another milestone in the company's green energy saga. As they continue to push the boundaries of innovation and sustainability, one thing is certain: EDC's commitment to the planet is unwavering, and with each bond sold, they're one step closer to a future powered by renewable energy.
Join the movement. Invest in the future. Together, we can turn the tide towards a cleaner, greener tomorrow.
Geothermal Energy financing has always been a crucial way of keeping companies going With most of the A list companies being backed by the goverment for Instance GDC in Kenya and KenGen , There are other ways of financing with greenbonds ,power purchase agreements and direct investment seen as tge most uses approach.
Source:Business World
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