| Title | Geothermal Exploration and Development After The Passage of the Philippine Renewable Energy Act of 2008 |
|---|---|
| Authors | Fernando S. Peñarroyo |
| Year | 2012 |
| Conference | ARGeo |
| Keywords | geothermal energy, Philippine National Renewable Energy Program, geothermal administrative rules and regulations, service contracts |
| Abstract | The Renewable Energy Act of 2008 (RE Act), signed on 15 December 2008, resulted in renewed interest in exploration and development of Philippine geothermal energy resources. The passage of the law and its implementing rules and regulations established the open and competitive selection process for exploration projects. Fiscal incentives were enhanced when the geothermal industry was declared a priority investment sector that will regularly form part of the Philippine investment priority plan. The market framework in the Philippines is supportive as the government is actively encouraging the development of renewable electricity generation in the country through National Renewable Energy Program (NREP), which outlines the government’s goal to increase renewable energy capacity to 15,304 MW by 2030, three times the levels in 2010. This includes an increase in geothermal power capacity by 75%. Electricity generation from high-temperature conventional resource remains the major use for geothermal energy but the Department of Energy (DOE) seeks to foster initiatives directed to encourage opportunities for direct use. The DOE also aims to develop new technologies like enhanced geothermal systems and low enthalpy by creating a market-based environment that is conducive to private sector investment and participation. In the meantime, mainstay large and traditional geothermal development companies will focus on upgrading existing resources and full utilization/optimization of existing geothermal projects. The open and competitive selection process, on the other hand, will allow smaller but entrepreneurial geothermal exploration companies to operate in greenfield areas. Regulatory issues remain to be the biggest obstacle as developers face complicated approval and permitting process with respect to environment and social acceptability regulations. |