DoE seeks to boost geothermal use
By Jordeene B. Lagare – June 29, 2020
from The Manila Times
THE Department of Energy (DoE) is crafting a policy to shore up the use of geothermal energy as part of efforts to shore up renewable energy (RE) in the Philippines.
In this Nov. 27, 2019 photo, Energy Secretary Alfonso Cusi delivers his keynote address at the first Government-Private Forum on Cleaner Energy Future Initiative for Asean in Makati City. (Photo from the DoE Facebook page)
Energy Secretary Alfonso Cusi has directed his team to draft a formal directive that would contain initiatives and guidelines on how to promote geothermal energy development and increase its utilization, as said resource is indigenous to the country.
“I would like to issue an order to really look deeply and comprehensively into how we can develop geothermal. I have been really thinking about it, assessing how we are addressing RE,” said Cusi during a meeting with key energy officials last June 24 via videoconferencing.
To promote the utilization of renewables, Cusi said it is best for the country to focus on the resources that are abundant and available, and extend all the necessary support to encourage its development through innovative policies and strategies.
“Let us break our head, think on how we can promote this source of energy – renewable that is really indigenous to us,” Cusi said.
“Eto, proven na natin itong geothermal (We’ve proven the viability of geothermal). Let’s go for it and regain our previous global standing as one of the top countries in geothermal development,” he added, noting that the Philippines used to be number one in the field.
Geothermal plants may be expensive to develop and take a longer time to construct, but this source of energy would be able to generate electricity that would help the country sustain energy security in the long term.
“This is the time to sit down and explore ways to support geothermal, because one installation will easily wipe out the 1,000 MW (megawatts) installation of solar. I am for RE that would help improve the energy security of the country,” Cusi said.
The Energy chief cited Vietnam as an example, where the country focused on developing the strength of its hydro resources.
“They are very strong on hydro and that’s what they are developing. They are giving priority to their hydro. It doesn’t mean that they don’t have the other sources, but they focused on the strength of this particular resource,” he added.
The National Geothermal Association of the Philippines (NGAP) expressed its gratitude to the Energy department’s directive to further develop geothermal in the country, saying it is “a step in the right direction that will help our country become more energy independent.”
“We have recently sent a letter to the Department of Energy to respectfully seek for its support in promoting and pursuing geothermal exploration and development in the country, which currently provides 11 percent of the Philippines’ power production,” said NGAP President Joeffrey Caranto.
While numerous underdeveloped geothermal energy sources have been identified, the group stated the high risk and capital-intensive nature of exploring and developing these areas, along with the lack of a guaranteed rate under the Feed-in-Tariff system, make it more challenging for private developers to pursue them.
Hence, the group is proposing a risk sharing between developers and the agency, especially during the “very costly” exploration stage.
“This can be done by coming up with a mechanism to tap the Malampaya Funds to provide financial support in the form of a loan with lower rates or a grant,” Caranto said.
Another option, he said, is outright spending of the government for exploration drilling using the fund and then, after acquiring the necessary resource data, the DoE can bid out the concessions to the private sector.
