Philippine Energy News

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Tuesday, July 11, 2006

DOE issues rules on non-power uses of geothermal energy

The Philippine Star 07/11/2006

The Department of Energy (DOE) will draw up new guidelines for small-scale and non-power application of geothermal energy, the country’s top energy official said.

Energy Secretary Raphael P. M. Lotilla said this is part of the government’s overall thrust to increase the country’s renewable energy-based capacity by 100 percent in the next 10 years.

These non-power applications include the development of geothermal sites of state-owned PNOC-Energy Development Corp. (PNOC-EDC) into eco-tourism spot.

"Included in our long-term plan is to consider all of our geothermal facilities as possible sites for eco-tourism projects of the government. The Department of Tourism can coordinate with us, for instance, by putting up hot spring resorts and mud-stream massage facilities," PNOC-EDC president Paul Aquino said.

Another non-power related activity that could be done in the geothermal sites is "drying".

"The heat of the return condensate could be utilized for drying purposes (dried food, fish)," Aquino said.

Aside from the non-power related geothermal development plan, the DOE will also push for the optimization of existing geothermal facilities to attain the goal of increasing the geothermal power capacity of the country.

The government will also offer geothermal sites for development to prospective investors through the Philippine Energy Contracting Rounds (PECRs).

Based on the Philippine Development Plan, the DOE will increase the capacity of geothermal power by another 1,200 megawatts (MW) by 2013 from the existing 1,923 MW capacity.

Over the next 10 years, the country will need over P87 billion for geothermal sector. Out of the total amount, P49 billion will come from the government and the remaining P38 billion expected to be contributed by private investors.

PNOC-EDC operates nine geothermal steamfields with an aggregate capacity of 1,145 megawatts accounting for about 60 percent of the country’s total installed geothermal capacity. Since its venture into the power generation business in 1997, it has significantly increased its contribution to the country’s overall power generation.

The company presently operates four power plants, which were built through the build-operate-transfer scheme. These are in Bacon-Manito in Luzon, four in Leyte, two in Southern Negros and Mt. Apo in Mindanao.

In addition to the sites already being developed by the company, the DOE estimates that 35 sites with up to 1,600 MW of potential capacity remain available for development in the Philippines.

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