2016 ANNUAL REPORT
Wind energy is electricity generated from the natural movement of air currents. Wind turbines convert the wind’s kinetic energy into mechanical energy, which is then turned into electrical energy by a generator. Wind energy does not emit greenhouse gases during production. Since it relies on the natural movement of air currents, it is renewable and requires minimal resources to operate.
Solar energy, on the other hand, is electricity generated from the photons in sunlight. This radiant light and heat from the sun is converted directly or indirectly into electricity through a range of technologies such as photovoltaic panels, solar architecture, molten salt power plants, and artificial photosynthesis, just to name a few.

KEY FINANCIAL FIGURES (Audited)

SUBSIDIARIES

Energy Development Corporation (EDC) owns, operates, and maintains the 150-MW Burgos Wind Project and the 6.82-MW Burgos Solar Project in Ilocos Norte.

Burgos Wind

  • Better wind quality resulted in higher sales volume, which increased the plant’s revenues by 9.7 percent or by USD5.0 million.
  • The plant’s operating income increased by 7.7 percent or by USD1.9 million due to lower G&A expenses from lower purchased services and utilities, which was partially offset by higher costs of sale of electricity due to higher repairs and maintenance.
  • Due mainly to foreign exchange gains in 2016, the plant’s net income increased by 1,455.6 percent or by USD13.1 million. This is compared to a foreign exchange loss in 2015. This development was brought about by the change of functional currency to U.S. Dollar (USD) from Philippine Peso (PHP) in 2016.

Burgos Solar

  • The plant’s revenues increased by 85.6 percent or by PHP42.3 million. This is mainly due to higher sales volume from the full-year operations of Burgos Solar 1 and the added capacity of Burgos Solar 2, which started commercial operations in January 2016.
  • Operating income increased by 141.4 percent or by PHP29.9 million due to lower head office costs, supplemented by lower purchased services and utilities.
  • The plant’s net income increased by 62.2 percent or by PHP12.6 million due to higher revenues.