The government now allows 100% ownership of foreign entities in large-scale geothermal exploration, development, and utilization projects, said Energy Sec. Alfonso Cusi.
Sec. Cusi made the announcement in a pre-recorded speech for the 2nd Global Ministerial Conference on System Integration of Renewables, which was part of the Singapore International Energy Week 2020.
Large-scale geothermal projects are defined as those with an initial investment cost of about USD 50 million capitalization through Financial and Technical Assistance Agreements (FTAAs).
FTAAs may be entered into between foreign contractors and the Philippine government for the large-scale exploration, development, and utilization of natural resources, and are signed by the President.
“While we have initially embraced a technology neutral policy, our periodic assessment of our country’s energy requirements is paving the way for innovative adaptations in our policy direction,” Cusi said in his speech.
The secretary said he has already signed a department circular last week, which provides guidelines for the third Open and Competitive Selection Process (OCSP3) in the awarding of renewable energy (RE) service contracts.
“From an investment perspective, OCSP3 allows for 100% foreign ownership in large-scale geothermal exploration, development, and utilization projects,” Cusi pointed out.
In the same event, Cusi reiterated his commitment to promote RE, hoping that it would be a prominent part of the country’s energy mix. The Department of Energy has imposed a moratorium on the building of new coal plants to accommodate the entry of new, cleaner, and indigenous power sources.