Energy Development Corporation (EDC) disclosed to the SEC that they have bought a majority stake (60%) in their sister company, First Gen Hydro Power Corporation worth $105 million. Both companies are subsidiaries of First Gen Corporation, the holding company of the Lopez Group of Companies.
First Gen Hydro operates the 112-megawatt Pantabangan-Masiway hydroelectric power plant which it bought from the Power Sector Assets and Liabilities Management Corporation (PSALM) in November 2006.
First Gen chief executive Federico R Lopez said the sale to EDC is aimed at promoting renewable energy in the Philippines.
This follows the trend of other energy firms who are starting hydro electric renewable energy projects. Leading the pack are the Aboitiz group with their string of hydro electric projects in Mindanao as well as the Alsons Group which announced a 3 stage hydro electric plant in the Visayan region.
Just within this month, both houses of the Legislative branch passed their consolidated version of the Philippine Renewable Energy Bill which gives preferential treatment to investors who will set up renewable energy projects in the Philippines in lieu of traditional fossil fuel based power plants.
[source]
Category: Hydro, Clean Energy
