RP opens bidding round for geothermal power

The Department of Energy (DOE) launched yesterday the bidding round for geothermal power projects in the country, which is expected to raise as much as $940-million worth of investments.

Energy Secretary Vincent S. Perez said the public bidding, considered the first in the world, will offer the 10 most prospective geothermal fields to further develop the country’s geothermal energy resource.

Perez said they will be conducting an international roadshow in the US, New Zealand and Japan by April this year to promote the new bidding round.

The Philippines is considered the world’s second largest geothermal producer with an installed generating capacity of 1,932 megawatts (MW), next to the United States.

"To firm up our long term objective of becoming the world leader in geothermal energy development, 10 prospective areas for development expansion of existing geothermal fields and exploration and development of new projects will be offered to interested investors. These areas were painstakingly and prudently selected based on technical, environmental and legal merits," Perez said.

Perez said the DOE has identified 35 geothermal resource areas with an estimated potential generating capacity of 4,137 MW. Based on the Philippine Energy Plan 2004-2013, the DOE is targeting the additional installation of 1,200 MW in the next 10 years.

The 10 promising geothermal fields, which could generate as much as 470 MW in additional capacity, are Manito-Bayabon and Rangas-Tanawon in Sorsogon; Biliran in Eastern Visayas; Amacan in North Davao; Dauin, Negros Occidental; Natib, Bataan; Mabini, Batangas; Montelago, Mindoro Oriental and Mt. Kabalian in Leyte.

"Already, at least six companies have already expressed interest to participate in the geothermal bidding round," Perez said.

Among the existing and active geothermal power producers in the country are state-owned PNOC-Energy Development Corp. (PNOC-EDC), Philippine Geothermal Inc. California Energy, and Ormat Inc.

Following the launching of the bid round, interested companies have five months to evaluate the areas‚ geothermal potential, and have until July 30 to submit their bid applications.

The DOE has embarked on an aggressive development of the country’s energy resources through improved contracting and bidding schemes and enhanced fiscal incentives to increase the country’s energy self-sufficiency by tapping indigenous reserves.

Early this month, the DOE wrapped up the first Philippine Petroleum Contracting Round (PCR-1) wherein new exploration blocks located near the oil and gas discoveries and producing fields were offered for public bidding.

PCR-1 drew firm commitments from several international oil companies to develop and explore oil and gas fields in the country.