DUBLIN, Aug. 4, 2020 /PRNewswire/ -- The "Philippines Geothermal Energy Market - Growth, Trends and Forecasts (2020-2025)" report has been added to ResearchAndMarkets.com's offering.
The Philippines geothermal energy market is expected to grow at a CAGR of more than 1.5% during the forecast period of 2020-2025.
Factors such as increasing energy demand and the need for cleaner energy are likely to drive the Philippines' geothermal energy market during the forecast period. However, low domestic investment, due to the high installation cost of the geothermal plants, is expected to restrain the Philippines geothermal energy market in the forecast period.
- Due to the favorable geological conditions, the deep geothermal system segment is expected to see significant growth in the Philippines geothermal energy market.
- Philippines government has a target to phase out its coal usage by 2040 and focus more on energy production from natural gas and renewable. This can create several opportunities for the Philippines geothermal energy market in the future.
- Favorable government policies and incentives on renewable energy are likely to drive the Philippines geothermal energy market during the forecast period.
Deep Geothermal Systems Expected to See Significant Market Growth
- Geothermal energy is derived from the sub-surface of the earth. Water or steam carries the geothermal energy to the earth's surface. Depending on its temperature characteristics, geothermal energy can be used for several purposes, such as heating, cooling, or electricity generation.
- As the Philippines is geographically present on the tectonically active Pacific-Ring of the Fire site, it makes the country a suitable location for any activity related to geothermal energy. Moreover, the geothermal energy deep inside the earth's surface does not get affected by any weather condition changes on the surface, which is likely going to be a plus point for deep and enhanced geothermal systems in the country.
- Counties geothermal capacity in 2015 was 1916 megawatts (MW) and increased to 1928 megawatts (MW) by the year 2019. Moreover, the government has planned to generate more than 500 gigawatt-hours (GWh) electricity from the geothermal energy by the end of 2030.
- In early 2019, Aragorn Power and Energy Corporation started the drilling phase for Kalinga Geothermal Project. The geothermal project is expected to have a capacity of 100 megawatts (MW) with a service contract of 260 square kilometers covering barangays in Pasil, Lubuagan, and Tinglayan. In the same year exploration phase ended. In exploration drilling, two well pads were completed, including the construction of access roads, improvement of national road choke points, and implementation of geo-hazard mitigation measures.
- Therefore, from the above points, deep geothermal system is likely to see significant growth in the Philippines geothermal energy market during the forecast period.
Government Policies and Incentives Expected to Drive the Market
- The government of the Philippines is providing considerable incentives and subsidies on the projects related to renewable energy in the country. This step was taken by the country to attract more domestic investors. The country's renewable energy is growing at a considerable rate. In 2019 the total renewable installation was 6695 megawatts (MW), which was higher than in 2018, 6577 megawatts (MW) installation capacity.
- The Department of Energy (DOE) is the lead agency in implementing the provisions in both renewable energy laws and their own implementing rules and regulations. Programs such as the Green Energy Options program that provides end-users the option to choose renewable energy resources as their source of energy. Such a policy is expected to drive geothermal energy in the country because of its high potential for geothermal in the region.
- Incentives such as seven years Income Tax Holiday (ITH), ten-year duty-free Importation of renewable energy machinery, equipment and materials, 100% Tax credit on domestic capital equipment and services, seven-year net operating loss carry-over, and several others are expected to attract more investments in the country's renewable energy sector.
- Hence, due to the above points, favorable government policies and incentives are likely to drive the Philippines' geothermal energy market during the forecast period.
The Philippines geothermal energy market is consolidated. Some of the key players in this market include Philippine Geothermal Production Company, Inc., Energy Development Corporation, National Power Corporation, Aboitiz Power Corporation, and Aragorn Power and Energy Corporation (APC Group Inc.).
Key Topics Covered
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW
4.2 Philippines Geothermal Energy Installation Capacity and Forecast, in Megawatts (MW), till 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5 MARKET SEGMENTATION
5.1 Technology Type
5.1.1 Ground Source Heat Pump
5.1.2 Direct Use Geothermal
5.1.3 Deep Geothermal System
6 COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Collaboration and Joint Ventures
6.2 Strategies Adopted by Key Players
6.3 Company Profiles
6.3.1 Philippine Geothermal Production Company, Inc.
6.3.2 Energy Development Corporation.
6.3.3 Aboitiz Power Corporation
6.3.4 Aragorn Power and Energy Corporation (APC Group Inc.)
6.3.5 National Power Corporation
6.3.6 Pure Energy Holdings Corporation
7 MARKET OPPORTUNITIES and FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/i3nsnk
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