Energy Development Corporation

Overview

Faced with the devastating impacts of climate change, Energy Development Corporation (EDC) had to act quickly to ensure the community had a reliable energy supply. Working closely with the local community and with Macquarie Asset Management’s (MAM) support, EDC is now providing secure, clean and safe energy to communities across the country.

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Sector	Renewable Energy
Invested	2017
Location	The Philippines

The challenge

Changes to our climate and the growing global demand for energy have created an urgent need to transform how we produce and consume energy. This is not only about long-term action. We can already see the immediate physical impacts of climate change, through the greater frequency and severity of extreme weather events.

In 2017, typhoon Urduja hit the Philippines, reducing generation capacity at EDC’s Malitbog geothermal power plant by 50 per cent. The area was still recovering from a serious earthquake at the time, the consequences of which included regular power shortages, economic disruption and damage to property and livelihoods.

Our engagement

In 2017, a MAM-led consortium acquired a majority stake in EDC. As a major investor in renewables, overseeing investment in 12.4GW of green generation capacity worldwide, our experience supported the business as it improved the resilience of its portfolio and the reliability of energy supply.

EDC’s investment included installing geohazard early warning systems, improved weather forecasting and more robust modelling to mitigate physical risk. For example, the business is reconfiguring and reinforcing pipelines and cooling towers to protect against seismic and typhoon-related disruptions. And by improving the accompanying infrastructure, such as roads, these modifications have benefited local communities too.

1.5GW

accounts for 20 per cent of the country’s installed renewable energy capacity

Outcomes

EDC has become the Philippines’ leading 100 per cent renewable energy provider.¹ Through a portfolio of geothermal, wind, hydroelectric and solar energy, its 1.5GW accounts for almost 20 per cent of the country’s total installed renewable energy capacity. The company is a critical component of the country’s energy landscape, providing an uninterrupted supply of reliable, cleaner and cheaper power.

EDC has also helped more businesses move towards renewable energy. In 2019, it provided renewable energy at 92 customer facilities, a 29.8 per cent increase from the previous year. All while growing revenue by more than 10 per cent.

EDC also works closely with local communities and barangays (local administrative divisions of government), actively supporting agroforestry and enterprise development to provide livelihoods for more than 100 partner community organisations. EDC is the only Philippine partner of the IUCN’s secretariat and Botanic Gardens Conservation International (BGCI), the world’s largest plant conservation network, and has helped to establish emergency response teams and planning, while minimising landslide risk and protecting biodiversity, by planting indigenous species on almost 10,000 hectares. Furthermore, with the help of 186 partners across the country, it is propagating 96 flagship Philippine native tree species and, as part of BGCI’s Global Tree Assessment (GTA), has already assessed 800 tree species, with 498 of them already updated and published in the International Union for Conservation of Nature (IUCN) Red List.

EDC has chosen a path characterised by profound care for the wellbeing of its people. This is emphasised in the organisation’s values and mission – to ‘forge collaborative pathways for a decarbonised and regenerative future’¹. It is also reflected in its recruitment approach, seeking those with the highest regard for the environment, community, and business partners. In short, people who are ‘powered by good’.

Key learnings

The destructive impacts of climate change have shown the need for early investment in resilient and renewable infrastructure. In supporting this transition, EDC is helping to provide a clean, sustainable and reliable energy for everyone.

EDC’s focus is now firmly on the implementation of a new business model in which everyone needs to transform to regenerative development. Recognising that no one organisation can succeed alone, the approach involves active and wide-reaching collaboration with all stakeholders. The aim of this mutually beneficial and committed stakeholder ecosystem is to do more than preserve and protect, its aim is to heal and ensure everyone has the opportunity to thrive in a healthier and safer environment.