As the Philippines accelerates its national transition to clean energy to meet strict decarbonization targets, the renewable energy unit of Federico Lopez’s First Gen Corp. is advancing a significant infrastructure overhaul. Energy Development Corp. (EDC) plans to invest 25 billion pesos ($407 million) to upgrade the Southern Negros Geothermal Project in Valencia.
The capital injection aims to keep the 43-year-old steamfield operational until 2057, securing a steady domestic supply of geothermal power. The facility currently operates at 241.8 megawatts of its allowable 282.5-megawatt capacity, feeding steam directly to the Palinpinon I, Palinpinon II, and Nasulo power plants.
To proceed with the expansion, First Gen filed an application to amend its environmental compliance certificate with the Department of Environment and Natural Resources. The proposal outlines a voluntary 22 percent reduction in the overall development block, shrinking the boundary from 5,163 to 4,028 hectares, while adjusting the specific operational footprint to 400 hectares, according to documents submitted to the agency.
The engineering blueprint requires drilling up to 43 make-up and replacement wells, alongside eight new production wells, two well pads, and new steam-gathering facilities. EDC will also triple the site’s battery energy storage system from 30 to 90 megawatt-hours, a capacity boost designed to support grid stability through 2057.
Engineers are integrating emerging green extraction techniques into the aging site to maintain pressure. The project incorporates pilot testing for a downbore heat exchanger and a trickle injection system to relieve superheated zones, modifications intended to limit mass extraction and reduce scaling risks. This $407 million allocation follows a separate 100-billion-peso initiative EDC announced earlier in January for its primary Tongonan geothermal complex in Leyte.
How the Southern Negros Extension Alters Geothermal Asset Valuation
The Southern Negros facility originally commissioned in 1983. Energy planners generally model standard geothermal steamfields with a 25-year average lifespan. First Gen’s strategy to push this specific site to a projected 74-year operational window shifts the return-on-investment timeline for heavy drilling projects.
By pairing focused well replacements with utility-scale battery storage upgrades, EDC avoids the high capital costs associated with establishing entirely new greenfield geothermal sites. While the Department of Environment and Natural Resources must still approve the boundary adjustments, the Valencia upgrade provides a direct template for sustaining aging renewable energy infrastructure without expanding total land disruption.