The Philippine Department of Energy preparing geothermal area contracting round

Alexander Richter 18 Eyl 2009

Reported locally, “The Department of Energy (DoE) (of the Philippines) is already preparing the Philippine Energy Contracting Round (PECR) for geothermal areas, which could start in the next two months.

The Plant in Tiwi, Albay was one of the geothermal facilities sold last year. In the next 10 years, the government hopes to attract about $10 billion in renewable energy investments that will double total capacity from such power sources to 9,000 megawatts from the current 4,500 MW.

“We are still preparing…In around six to eight weeks, we could already publish the rules and invitations for the contracting round [for geothermal projects],” Mario C. Marasigan, DoE assistant secretary, yesterday told reporters. “At the moment, we could say that we are studying eight sites now, and one or two have qualified so far for the contracting round.”

Under the PECR, the government auctions off contracts to explore and develop the country’s energy resources.

The PECR, which started in 2003, is in line with the government’s thrust to develop indigenous sources of energy in a bid to make the country less dependent on oil.

Mr. Marasigan said that potential capacity of evaluated sites which have already qualified for the contracting round totals 40-50 megawatts. The two sites are located in Makiling-Banahaw, and in Camarines.

Asked if other renewable energy sources may be included in the PECR, Mr. Marasigan said, “Right now, geothermal is only the prospective for the contracting round [for renewable energy]. Much of the letters of interest we are receiving for the others are more on unsolicited offers for frontier areas, or areas where we have very limited information.”

Most of the prospective wind and hydro locations in the country are frontier areas, he said.”

Source: Business World Online