Right to geothermal development in the Philippines to be given through open, competitive process
The Philippines DOE announces that tendering of geothermal energy contracts will be going through an Open and Competitive Selection Process (OCSP3).
Earlier this week, we reported on fundamental changes to the rules pertaining to foreign ownership in geothermal projects and development in the Philippines. The Philippines Department of Energy has now provided further details on rules related to the now allowed 100% foreign ownership in large-scale geothermal projects,
The Philippines Department of Energy has released the Guidelines Governing the 3rd Open and Competitive Selection Process (OCSP3) in the Award of Renewable Energy Service Contract and for other Purposes. (Accessible here)
DOE clarified that granting of a right to develop the country’s energy resources to a certain entity, whether foreign or local, will only be given through a transparent and competitive bidding.
A consolidated overview on comments and inquires on the public consultation on adopting the guidelines governing the 3rd open and competitive selection process (OCSP3) in the award of renewable energy service contracts can be accessed here (pdf).
Geothermal resources are defined as mineral resources by Republic Act 9513 or the Renewable Energy Act of 2008.
While the Philippines now allows 100% foreign participation in geothermal resources development, the DOE said foreign investors must meet the following conditions: It should be large-scale, with a minimum investment cost of about $50 million, Financial and Technical Assistance Agreement (FTAA) as provided under the Constitution, FTAAs could be entered into between foreign contractors and the Philippine government for the large-scale exploration, development, and utilization of natural resources, and are signed by the President.
We have not been able to find the actual Department Circular, but will add it if it is published on the DOE website.