Geothermal Energy

Lying on a tectonically active area in the eastern Pacific Ring of Fire, the Philippines is the second largest geothermal producer in the world next to the United States. With vast potential geothermal resources, the country is ensuring greater private sector participation in the exploration and development of these resources through the conduct of Open and Competitive Selection Process (OCS) and awarding of Geothermal Renewable Energy (RE) Service Contracts.

Several areas are ready for upstream geothermal activities, which include drilling programs and steam harnessing.

Key Players

Key players that operate in the Philippines include Energy Development Corporation, Aboitiz Power, Chevron Geothermal Services Company, Emerging Power Inc., Maibarara Geothermal Inc., and Philippine Geothermal Production Company Inc.

Foreign companies already operating in the country include:

• Tamon Industrial Services Corp. (TISCO)
  An industrial service and construction company in the power industry with market insights extending throughout Southeast Asia.
• Eni Green Power
  The Italian company’s renewable energy subsidiary.
• Marubeni
  Japanese trading house that has announced plans to build and operate geothermal power plants in the Philippines.

Cost-Friendliness

• Extraction of steam from geothermal resources is lower compared to steam generation through natural gas and coal or other fossil fuels.
  
• Electricity produced by geothermal plants is more affordable compared to hydropower stations

Incentives

• The Philippines allows 100% foreign ownership in large-scale geothermal projects
  
• Income tax holiday
  
• Exemption from duties on renewable energy machinery and materials
  
• Zero percent value-added tax rate