First Gen Corp. of the Lopez Group said Friday subsidiary Energy Development Corp. will no longer develop geothermal activities in Peru over political and market uncertainties.
First Gen said in a disclosure to the Philippine Stock Exchange the board of directors and stockholders of Energy Development Corporation Peru S.A.C., a subsidiary of EDC, “decided to no longer pursue exploration and development activities in Peru due to political and market factors.”
EDC incorporated the Peru subsidiary on July 17, 2012 in Lima, Peru as a 70-percent owned subsidiary of EDC Geotermica S.A.C. (Peru).
Its main purpose is to generate, transmit and/or distribute energy derived from any and all forms, types and kinds of energy sources for lighting and power purposes and whole-selling the electric power to power corporations, public electric utilities and electric cooperatives.
Energy Development Corporation Peru S.A.C. on Jan. 3, 2014 became a 100-percent indirectly owned subsidiary by the parent company through the acquisition of Hot Rock Entities.
EDC, the country’s biggest geothermal company, has been developing geothermal projects in Peru, Indonesia, Taiwan and Chile as part of its expansion projects.
EDC earlier said that although the COVID situation and the accompanying travel restrictions had caused some delays in its activities, particularly in Indonesia and Taiwan, the company remained keen on those markets.
The company intends to develop the Graho Nyabu project in Indonesia.