Philippines Targets Major Investment in Geothermal Resources

The Philippine government plans to approve 19 new contracts to develop the nation’s massive geothermal energy resources in the next five months. A top energy official said financial incentives for the development of renewable energy projects could attract more than $2.5 billion in private dollars from domestic and international companies. “Incentives for renewable projects are giving geothermal development a much needed boost,” Alejandro Oanes, the Phllippine Energy Department’s division chief for geothermal energy, said. The Philippines is already the world’s second-largest producer of geothermal energy. In fact, for more than three decades the nation has tapped into its remarkable geothermal resources, which are the result of volcanic pressures caused by the movement of the Philippine tectonic plate beneath the Eurasian plate. With about 2,000 megawatts of installed capacity, geothermal energy accounted for 17 percent of the nation’s total power output in 2008. The 19 new projects could add another 620 megawatts of power.