Energy Development Corp. (EDC) is not currently engaged in any discussions regarding Indonesia's PT Barito Renewables Energy's (BREN) $5-billion proposal to acquire the geothermal producer, though the unsolicited offer has not been rejected outright, a company executive said.

"Of course, any company that gives you an offer, you wouldn't just dismiss them," EDC President and Chief Operating Officer Jerome H. Cainglet told reporters on Wednesday when asked whether the group was considering selling the company. "For now, there are no discussions," he added.

Cainglet noted that EDC had no obligation to respond to the proposal because it was unsolicited.

His remarks came roughly two weeks after Lopez-led First Gen Corp. disclosed that BREN had submitted an unsolicited, non-binding $5-billion offer to acquire EDC, its renewable energy subsidiary. BREN is the renewable energy arm of Indonesian conglomerate PT Barito Pacific Tbk and holds a majority stake in Star Energy Geothermal, Indonesia's largest geothermal energy producer.

The proposed deal would be among the largest cross-border renewable energy transactions in Southeast Asia, a region where utilities and developers are increasingly pursuing scale to meet rising electricity demand and decarbonization commitments. Cross-border geothermal acquisitions in particular remain rare, despite the shared volcanic geology that makes Indonesia and the Philippines two of the world's most promising markets for the technology.

EDC is the Philippines' largest geothermal energy producer, accounting for approximately one-fifth of the country's installed renewable energy capacity, with more than 1,400 megawatts (MW) from its geothermal, wind, hydro, and solar assets. The Philippines has an installed geothermal capacity of 1,952 MW, making it the world's third-largest geothermal power producer after the United States and Indonesia.

The offer also comes at a time when the Philippines has moved to fully open its renewable energy sector to foreign ownership, following a 2022 policy change by the Department of Energy that removed long-standing foreign equity restrictions on RE projects — a shift that has drawn growing interest from regional investors.

Cainglet said the proposal would not affect the country's geothermal output because EDC's generating assets would remain part of the national power system regardless of ownership.

When asked whether Manila Electric Co. (Meralco) might also pursue EDC, Chairman and Chief Executive Officer Manuel V. Pangilinan said the renewable energy company would complement the utility's expanding clean energy portfolio.

"It's a renewable, so it might be a good addition to the renewables of MGEN (Meralco PowerGen Corp.)," Pangilinan said.

MGEN, Meralco's power generation arm, operates a 5,068-MW portfolio across the Philippines and Singapore, including thermal, natural gas, solar, and battery energy storage assets.

Pangilinan clarified, however, that Meralco had not held any discussions with the Lopez group. "We'll cross the bridge when we build it, so to speak," he said.

— Sheldeen Joy Talavera