Philippines planning geothermal risk mitigation policy
The Philippines Department of Energy is engaging with donors and stakeholders on risk mitigation policy to help spur geothermal development.
Local news in the Philippines report that the country’s Department of Energy is planning a risk mitigation policy targeted at help push investments into geothermal development.
The Renewable Energy Management Bureau of DOE is leading the efforts helped to overcome the high capital cost and risk involved particularly in the early stages of development.
DOE is engaging with stakeholders from industry to push for a policy that will support development, including potential donor partners for the necessary assistance.
The Philippines, long the world’s number two in geothermal power generation capacity in the world fell behind Indonesia in 2018.
Like in other countries, geothermal developers have been seeking incentives from government for development both financial and non-financial particularly for low-to-medium enthalpy geothermal resource development.
Energy Secretary Alfonso Cusi has said he is pushing for the development of geothermal power among the country’s renewable resources to help attain energy security and boost RE in the power mix.
To help spur interest in the geothermal sector, the DOE opened the sector to greater foreign investments in 2020 by allowing 100 percent foreign participation in large-scale geothermal projects.
This is through the third Open and Competitive Selection Process (OCSP3) wherein foreign companies are now allowed to participate in geothermal exploration, development, and utilization activities with a minimum investment cost of $50 million and under the Financial and Technical Assistance Agreements as provided by the Philippine Constitution.