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MANILA, Philippines - The proposed Maibarara geothermal power plant could yield additional generating capacity should new drilling within the contract area turns out a success, a Department of Energy (DOE) official said.
Undersecretary Jose M. Layug, Jr. said the government expects Maibarara Geothermal Inc.'s (MGI) 20-megawatt power plant, which would straddle Laguna and Batangas, to be up and running by next year.
"It's the first geothermal project operated by a Philippine private company because Energy Development Corp. (EDC) used to belong to the government. Eto yung una under the Renewable Energy Act na nakahikayat tayo ng Filipino investor," Layug said.
MGI, which topped a bid the DOE conducted in 2009, is putting up the power plant in the Western flank of Mt. Makiling.
The company has since rehabilitated geothermal wells in the area, with a plan to drill two new wells next year.
"Ngayon 20 megawatts lang yung talagang kaya where they have rehabilitated the wells but they are set to drill two more wells and tignan natin how much more they can produce," Layug said.
MGI is pursuing the Maibrara project without the benefit of tariff incentives under the Renewable Energy Act. The so-called feed-in-tariff (FIT) meant for developers of renewable energy projects guarantees their return on investment. Regulators however have yet to wrap up public consultations on the FIT, the cost of which would be reflected in a new line item in consumers' electricity bills.
PetroEnergy Resources Corp., through unit PetroGreen Energy Corp., controls 65 percent of MGI. Trans-Asia Oil and Energy Corp. and Philippine National Oil Co.-Renewables Corp. own the remaining 25 percent and 10 percent, respectively.
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