US firms urged to invest in geothermal projects
By Jordeene B. Lagare – April 16, 2021
from The Manila Times
The Philippines is inviting companies in the United States to invest in the development of geothermal projects in the country.
“It is unfortunate that the US seems to have forgotten us, so I hope our American friends in the business community will again take a look at our new initiatives that aim to make the Philippines rife with many investment opportunities,” said Energy Secretary Alfonso Cusi in a virtual briefing held on Thursday.
Cusi said during the event dubbed “PH-US at 75: Strengthening Ties through Sustainable Recovery” that he wants American investors to have 100-percent participation in geothermal.
“On the renewables sector, we are inviting private sectors to develop the geothermal, that’s an area we would really like to tap, develop, that’s the kind of power that we need,” he added.
In response, the US government expressed its readiness to support the Philippines in attracting investments in infrastructure including health, energy, transportation and water.
“We want to be able to increase investments by the private sector in renewable energy in the Philippines,” said Gloria Steele, acting administrator of the United States Agency for International Development (Usaid), adding the energy sector is a “very important area” of infrastructure for the US government.
Steele revealed Usaid, working closely with the Department of Energy and the Energy Regulatory Commission, will launch an initiative that will improve the environment for private investment and competition in the energy sector.
Through this project, Steele said the Usaid “will provide transaction advisory services to help close deals and secure investments.”
The launch will coincide with the first renewable energy (RE) auction in the Philippines “which would be a key mechanism for the private sector to participate and bid to supply RE in the most competitive rates for consumers,” she added.
The Energy department has been aggressive in its push for clean and indigenous sources of energy.
It was in October last year when the agency announced that 100-percent foreign ownership in large-scale geothermal exploration, development and utilization projects are now allowed.
Large-scale geothermal projects are those with an initial investment cost of about $50 million capitalization through financial and technical assistance agreements.
