Update on Geothermal Development in the Philippines

Abstract

Amid the absence of new players in geothermal field development and the economic turmoil that has rocked the Asian Region, the Philippinesí geothermal power plants have continuously increased during the last seven (7) years from 888 MWe in 1992 to about 1909 MWe in 1999. This has been realized through the deregulation of power generation thus allowing the entry of the private sectors through the Build- Operate-Transfer (BOT) scheme. A total of 695.25 MWe capacity addition was realized from Tongonan (595.25 MWe) and Mindanao (100 MWe) through BOT.

In 1998, the contribution of geothermal energy to the countryís total energy requirements has increased from 18.7% in 1997 to 21.52%. To date, since production began in 1977, the Philippines has generated a cumulative total of 100,602.41 gigawatt-hour (GWh) of electricity. This is tantamount to some 173.45 million barrels of fuel oil equivalent (MMBFOE), which translates to about US$3.4 billion in terms of foreign exchange (forex) savings.

Due to the cost-cutting measures that the geothermal developers have been enforcing in response to the economic crisis in the Asian Region, there were no new nonexclusive geothermal exploration permit (NEGEP) applications received by the Philippine Department of Energy (DOE) since 1998. The NEGEPs that had expired were similarly not reapplied for extension. Nonetheless, exploration activities by the DOEís Geothermal Division were continuously undertaken until 1998 thru the implementation of its ìNational Inventory of Geothermal Resourcesî project. Reconnaisance geological and geochemical surveys were conducted in another three (3) provinces, namely, Bulacan, Palawan and Mt. Province.

Three (3) new geothermal areas, namely, Mt. Labo, Northern Negros and Cabalian, are presently in advanced exploration and development stage. An aggregate total of 340-MWe installed capacity is projected to be commissioned in these fields by PNOC-EDC.