The Economics of Geothermal Power Development in the Philippines

In the Philippines the development of geothermal energy resources for electricity generation is undertaken by two independent agencies. One develops the steamfield and sells the steam. The second buys the steam, which, in the case of the Philippines, is the National Power Company (NPC), a government-owned corporation mandated to produce electricity for sale and distribution to various consumers.
One such steamfield developer is the Philippine National Oil Company-Energy Development Corporation (PNOC/EDC), Geothermal Division. At present PNOC is operating in two areas, the Tongonan Field and the Palimpinon Field. This paper discusses the economics of the development of these two steamfields. Historical investments are presented for both. Past and projected additional investments up to commissioning for a new field are also presented. Variations in the investment levels for the three fields are discussed, and explanations for the variances are presented.