News

Philippines: US$0.02/ kWh subsidy for local communities at Mount Apo

Philippines: US$0.02/ kWh subsidy for local communities at Mount Apo Steam pipes at Mount Apo, Mindanao Philippines source: flickr/penmanila
Alexander Richter 29 Aug 2010

EDC pays a subsidy of US$0.02 per kWh generated from its plants at Mount Apo, Philippines to local communities. The amount is used for the electrification of the region and development and environmental purposes.

According an article from the Philippines, the local communities close to Mount Apo receive a subsidy of US$0.02/ kWh from EDC, which operates geothermal plants in the region. The use of this subsidy is split into 25% each for development/ livelihood and reforestation/ health/ environmental enhancement fund and 50% for an electrification fund.

The full piece, reads: “Some P33.4 million (US$740,000) from the royalty tax levied on the geothermal power generated by the Energy Development Corporation (EDC) from Mount Apo is still available for use by the provincial government of North Cotabato, according to the provincial board.

The money, according to Cotabato 2nd District Board Members Jose Tejada and Noel Baynosa, chair and co-chair of the Committee on Infrastructure and Energy and Baynosa, respectively, is still intact at the Department of Energy (DoE) since last year.

They said they verified such information at the DoE office. Tejada said North Cotabato, host province of the Mount Apo geothermal power plants, is entitled to a P1 per kilowatt/hour (US$0.02) subsidy, along with the city and the village where the power facilities are located.

It was learned that 25 percent of the P1 allocation goes to the development and livelihood fund; another 25 percent is allotted for the reforestation, watershed management, and health and environment enhancement fund; and the other half goes to the electrification fund.”

Source: Manila Bulletin Publishing Corp.