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Energy industries

Philippines to Give Geothermal Energy 'Special Treatment'

Strategic Insights

— 1 min read

Energy Secretary Sharon Garin acknowledged the need to promote geothermal energy in the Philippines, describing it as an "unseen" and "undervalued" resource. This move comes after a call from the country's largest geothermal energy producer, Energy Development Corp. (EDC), to provide longer development phases and more attractive auction rates for geothermal energy. The Department of Energy (DOE) is crafting a proposal for a bill that will strengthen and improve the development of geothermal energy, which Garin considers a "renewable" and "one of our best assets."

Key Takeaways:

  • The Philippine government has acknowledged the need to give geothermal energy "special treatment" due to its potential as a renewable energy source.
  • Energy Development Corp. (EDC) is calling for longer development phases and more attractive auction rates for geothermal energy.
  • The Department of Energy (DOE) is drafting a proposal for a bill that will strengthen and improve the development of geothermal energy.
  • The DOE is also pushing for funding for a gradiometric study to map subsurface density variations that can indicate the presence of geothermal resources.
  • The DOE is finalizing an agreement with the Land Bank of the Philippines for a geothermal de-risking facility that will offer cost-shared exploration support to developers.
  • The de-risking tool will cover up to 50 percent of drilling costs through convertible loans, with funding being converted to grants if drilling efforts are futile.
  • First Gen Vice President Jay Soriano is calling for the inclusion of geothermal energy in the country's green energy auctions and an expansion of the development phase to possibly seven years from three years.

Statistics:

  • Up to 50 percent of drilling costs for geothermal exploration may be covered by the de-risking tool through convertible loans.
  • The geothermal de-risking facility is expected to be operational next year.
  • The development phase for geothermal energy in the Philippines may be expanded to possibly seven years from three years.

Sources:

  • "Energy Sec. Sharon Garin: Geothermal energy in PH needs 'special treatment'" (The Philippine Star)
  • "First Gen pushes for geothermal inclusion in GEA" (BusinessWorld)
  • "DOE pushes for funding for gradiometric study to map geothermal resources" (The Philippine Star)
  • "DOE to finalize agreement with Land Bank of the Philippines for geothermal de-risking facility" (BusinessWorld)

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