2015 Annual Report

Business Review

Operational Highlights

  • After typhoons compromised the geothermal plants’ operations in 2013 and 2014, typhoon-proofing and restoration of the plants were made a priority. In view of lessening the unplanned outages arising from harsh and severe weather conditions, various power plant structures were reinforced to a higher maximum design wind speed that can withstand wind speeds of 300 kilometers per hour
  • BacMan Unit I completed its retrofit  program during the first quarter of 2015. The completion of the installation of the new Toshiba steam turbine rotor units and diaphragms in February 2015 increased the capacity of its Unit I from 55 MW to 60 MW. This effectively increased the plant’s total capacity to 140 MW
  • The 112.5-MW Tongonan plant’s Unit II experienced an unplanned outage from March to July 2015 due to a blade failure in its steam turbine rotor, resulting in revenue opportunity losses. The project has since re-bladed the turbine in Unit II. As early as January 2015, retrofit kits were ordered to rehabilitate the entire Tongonan plant. The rehabilitation program is expected to augment the plant’s output by 10 MW once completed in the second half of 2017
  • For the sixth straight year, EDC has measured and reported its social, environmental, and economic bottom line impact in its integrated annual and sustainability report following the Global Reporting Initiative (GRI) framework.

 

Business Developments

  • EDC has built its overseas concession portfolio with the acquisition of the local subsidiaries of Australian geothermal firm Hot Rock Ltd. and the signing of a joint venture agreement with Toronto Stock Exchange-listed and global renewable energy player Alterra Power Corporation. This was after the different concessions in priority countries were individually ranked to stage gate and proceed with the “most promising” of the geothermal concessions
  • Two concessions in Chile for the Mariposa project—Laguna del Maule and Pellado with Alterra Power Corporation—and three in Peru—Quello Apacheta and Achumani with Hot Rock Ltd. and Pinchollo Libre with Alterra Power Corporation—are in EDC’s overseas portfolio
  • In Chile, the recent downtrend in commodity prices has caused the company to re-evaluate the project’s economics and work plan. The implementation of the three-well drilling program for the Mariposa Project was deferred in order to continue the pursuance of development activities with greater focus, including conducting further environmental and technical studies for the steamfield, power plant, and transmission line interconnection
  • EDC remains committed to grow its geothermal business overseas. Based on key prospects in Chile and Peru, estimated geothermal potential in the countries are at least 800 MW. Furthermore, EDC completed the geotechnical survey of Graho Nyabu in Indonesia, where there was an assessed potential of more than 200 MW
  • The BacMan 3 project has been deferred due to the current challenges to its financial viability in light of declining commodity prices. The company instead is focusing its investments on its existing asset base to boost output, improve reliability, and increase cash generation.

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Operational Highlights

  • After typhoons compromised the geothermal plants’ operations in 2013 and 2014, typhoon-proofing and restoration of the plants were made a priority. In view of lessening the unplanned outages arising from harsh and severe weather conditions, various power plant structures were reinforced to a higher maximum design wind speed that can withstand wind speeds of 300 kilometers per hour
  • BacMan Unit I completed its retrofit  program during the first quarter of 2015. The completion of the installation of the new Toshiba steam turbine rotor units and diaphragms in February 2015 increased the capacity of its Unit I from 55 MW to 60 MW. This effectively increased the plant’s total capacity to 140 MW
  • The 112.5-MW Tongonan plant’s Unit II experienced an unplanned outage from March to July 2015 due to a blade failure in its steam turbine rotor, resulting in revenue opportunity losses. The project has since re-bladed the turbine in Unit II. As early as January 2015, retrofit kits were ordered to rehabilitate the entire Tongonan plant. The rehabilitation program is expected to augment the plant’s output by 10 MW once completed in the second half of 2017
  • For the sixth straight year, EDC has measured and reported its social, environmental, and economic bottom line impact in its integrated annual and sustainability report following the Global Reporting Initiative (GRI) framework.

 

Business Developments

  • EDC has built its overseas concession portfolio with the acquisition of the local subsidiaries of Australian geothermal firm Hot Rock Ltd. and the signing of a joint venture agreement with Toronto Stock Exchange-listed and global renewable energy player Alterra Power Corporation. This was after the different concessions in priority countries were individually ranked to stage gate and proceed with the “most promising” of the geothermal concessions
  • Two concessions in Chile for the Mariposa project—Laguna del Maule and Pellado with Alterra Power Corporation—and three in Peru—Quello Apacheta and Achumani with Hot Rock Ltd. and Pinchollo Libre with Alterra Power Corporation—are in EDC’s overseas portfolio
  • In Chile, the recent downtrend in commodity prices has caused the company to re-evaluate the project’s economics and work plan. The implementation of the three-well drilling program for the Mariposa Project was deferred in order to continue the pursuance of development activities with greater focus, including conducting further environmental and technical studies for the steamfield, power plant, and transmission line interconnection
  • EDC remains committed to grow its geothermal business overseas. Based on key prospects in Chile and Peru, estimated geothermal potential in the countries are at least 800 MW. Furthermore, EDC completed the geotechnical survey of Graho Nyabu in Indonesia, where there was an assessed potential of more than 200 MW
  • The BacMan 3 project has been deferred due to the current challenges to its financial viability in light of declining commodity prices. The company instead is focusing its investments on its existing asset base to boost output, improve reliability, and increase cash generation.

Pages: 1 2 3