BOI grants Green Lane Certificates for new Geothermal Projects in the Philippines

By DTI-Board of Investments
February 14, 2024

MAKATI CITY – Welcoming more players in the country’s renewable energy, the Philippine Board of Investments (BOI), through its One-Stop Action Center for Strategic Investments (OSACSI), awarded green lane certificates for the geothermal energy projects that will soon rise in various parts of the country.

Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo handed the Green Lane Certificates of Endorsement to the Philippine Geothermal Production Company, Inc. (PGPC) and the Pan Pacific Power Phils., Corp. (PPPPC) for the said geothermal projects.

The Green Lane Certificates awarded to PGPC are for the following geothermal projects: Daklan Geothermal Power Project in Benguet with estimated 51 MW capacity; Mt. Labo Geothermal Power Project in Quezon, Camarines Norte and Camarines Sur with estimated 105 MW capacity; and Mt. Malinao Power Project in Camarines Sur and Albay with estimated 50 MW capacity.

In particular, the estimated project costs for the three Geothermal Power Projects are P6.66 billion for Daklan, P7.580 billion for Mt. Labo and P5.030 billion for Mt. Malinao. These projects are projected to generate a total of 1,500 jobs from exploration and development, well drilling to commercial operations, which will be beneficial to Filipino workers.

PGPC is a Filipino corporation and a subsidiary of SM Investments Corporation, which operates the Tiwi and Mak-Ban Geothermal Steam Fields. The company and its predecessors ushered the birth of the Philippine geothermal industry in 1971.

Meanwhile, a Green Lane Certificate was also granted to the Baua-Sikaw Geothermal Power Project of PPPPC, which will soon operate in the Municipalities of Lal-lo, Gonzaga, and Sta. Ana in Cagayan Province.

With a total project cost of P689.9 million during the 7-year exploration period of its contract, the project itself is projected to produce 61 megawatts (MW). The Baua-Sikaw project will employ Filipinos for the duration of its contract as it aims to generate more than 500 job opportunities. In addition, as it continues its commitment to provide clean and renewable energy sources to meet the country's growing energy needs, the company has other new projects in the pipeline.

“This endorsement will definitely be a great boost for the RE industry and we are positive that many significant milestones will arise from this government support and initiative,” Mr. Saporsantos, Jr. said.

“This will assist RE Developers like us to accelerate the progress of our projects in support of the government’s thrust to pursue green and sustainable energy development,” he added.

From 2021 to 2026, the Philippines aims to increase its geothermal power generation capacity by 91 MW. Currently, there are 19 potential locations in the exploration stage. In 2020, the Department of Energy (DOE) within formulating the 2020-2040 National Renewable Energy Program (NREP) targets, proposed an additional capacity of 777.6 MW based on the awarded contracts.