MANILA, Oct. 27 (Xinhua) -- The Philippines allows 100-percent foreign ownership in large-scale geothermal exploration, development and utilization projects, Philippine Energy Secretary Alfonso Cusi said on Tuesday.
Large-scale geothermal projects are those with an initial investment cost of about 50 million U.S. dollars capitalization through Financial and Technical Assistance Agreements (FTAAs), the Department of Energy (DOE) said in a statement.
The DOE said FTAAs may be entered into between foreign contractors and the Philippine government for the large-scale exploration, development, and utilization of natural resources, and signed by the president.
Cusi announced the decision granting 100 percent foreign ownership in large-scale geothermal projects in a recorded speech during the 2nd Global Ministerial Conference on System Integration of Renewables on Tuesday, which was part of the Singapore International Energy Week 2020.
In the same speech, he also said the Philippines has declared a moratorium on endorsements for greenfield coal power plants.
The DOE said the moratorium on the endorsements for greenfield coal power plants and the opening up of the country's geothermal sector to greater foreign investments to further brighten the prospects of the country's renewable energy landscape, are among the innovative policies that the DOE will be implementing.
Cusi reiterated his commitment to promoting renewable energy, as he expressed hope that in time, renewable energy will figure prominently in the energy future of the Philippines.
"We are also pushing for the transition from fossil fuel-based technology utilization to cleaner energy sources to ensure more sustainable growth for the country," he said.
The Philippines is one of the world's top producers of geothermal power, as it is located along the "Ring of Fire" zone of Pacific volcanoes. Enditem