Market Trends of Philippines Geothermal Energy Industry
This section covers the major market trends shaping the Philippines Geothermal Energy Market according to our research experts:
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, the country is suitable for any activity related to geothermal energy.
- Moreover, the geothermal energy deep inside the earth's surface is not affected by any weather conditions changes on the surface, which will likely be a plus point for deep and enhanced geothermal systems in the country.
- The country's geothermal capacity in 2017 was 1916 megawatts (MW) and increased to 1928 megawatts (MW) by 2021. Moreover, the government has planned to generate more than 500 gigawatt-hours (GWh) of geothermal energy by the end of 2030.
- Therefore, from the above points, a deep geothermal system will likely see significant growth in the Philippine geothermal energy market during the forecast period.
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Government Policies and Incentives Expected to Drive the Market
- The Philippine government generously offers incentives and subsidies for renewable energy projects in the nation. The nation took this action to entice domestic investment. Renewable energy usage in the nation is rising quickly. In 2021 the total renewable installation was 7617 megawatts, which was higher than in 2020, with 6986 megawatts installation capacity.
- The Department of Energy (DOE) is in charge of carrying out the terms of the legislation governing renewable energy sources as well as their own implementing rules and regulations. Programs like the Green Energy Options program give consumers the option of choosing renewable energy sources as their energy source. A program like this is anticipated to promote geothermal energy in the nation due to the region's strong geothermal potential.
- More investments are anticipated in the nation's renewable energy sector thanks to incentives like the seven-year Income Tax Holiday (ITH), the ten-year duty-free importation of renewable energy machinery, equipment, and materials, the 100% Tax Credit on Domestic Capital Equipment and Services, the seven-year Net Operating Loss Carry-Over, and several others.
- Owing to the above points, favorable government policies and incentives will likely drive the Philippine geothermal energy market during the forecast period.
