Geothermal

Power Plant
The word geothermal
comes from the Greek
words geo (earth) and
therme (heat).
General Concept

This Photo by Unknown Author is licensed under CC BY-NC-ND

 General Concept

•Geothermal power plants draw

fluids from underground reservoirs
to the surface to produce steam.
General Concept

This Photo by Unknown Author is licensed under CC BY-NC-ND

 General Concept

This steam then drives turbines that

generate electricity. There are three
main types of geothermal power
plant technologies: dry steam, flash
steam, and binary cycle.

This Photo by Unknown Author is licensed under CC BY-NC-ND

Dry steam Flash steam Binary cycle
 Dry steam
Dry steam cycle plants are
the most cost-effective type
of geothermal energy plants,
working with the simplest
operating principle. These
plants are used directly in
sources that produce hot
steam. This method does not
use condensers.
Dry steam Flash steam Binary cycle
 Flash steam
Flash steam plants take
high-pressure hot water
from deep inside the earth
and convert it to steam that
drives generator turbines.
Dry steam Flash steam Binary cycle
 Binary cycle
In sources with a low or
medium temperature, or in
double cycle (binary)
processes used with
residual heat, it is ensured
that the fluid, which has a
lower evaporation
temperature than water, is
evaporated. The evaporated
fluid is used to turn the
turbine.
Dry steam Flash steam Binary cycle
 Geothermal Energy Situation

Newly Commissioned Geothermal Power Plant

20 MW Maibarara Geothermal Power Project commissioned on February 08, 2014

 SALIENT FEATURES OF P.D. 1442 vs. RA 9513

P. D. No. 1442 R. A. 9513

Contract Term 5 years exploration period 2 yrs explo + extendible for two (2) years,
+ 2 years exploration period + further extendible for one (1) year
extension + 25 years production (pre-development stage)
period + 18 years production 25 years, maximum of 50 years
period extension (Development/commercial stage)

Ownership 60% Filipino, 40% Foreign Can be 100% foreign, provided the President
sign the contract
Annual Cost Recovery Maximum 90%
1.5% from the sale of electric power for
(% of Gross Proceeds)
geothermal energy

Share of Net Proceeds

National 60% -do-
LGU 40%

Depreciation of Capital 10 Years straight Accelerated depreciation

Equipment line

Exemption from payment of All taxes except 7 years Income Tax Holiday (ITH)
Taxes
income tax 1.5% Special Realty Tax Rates on Equipment and Machinery
7 years Net Operating Loss Carry-Over (NOLCO)
10% Corporate Tax Rate after seven (7) years of ITH
Zero Percent Value-Added Tax Rate
Tax Exemption of Carbon Credits
100% Tax Credit on Domestic Capital Equipment and Services
Importation Exemption from payment of tariff 10 year Duty-free Importation of RE Machinery, Equipment and Materials
duties and
compensating tax on the
importation of machinery,
equipment, spare parts and all
materials for geothermal
operations during contract
duration
 INVESTMENT OPPORTUNITIES IN
GEOTHERMAL DEVELOPMENT

Targeted Geothermal Capacity Addition (in MW), by Grid

COMMISSIONING YEAR
LOCATION
2013-2015 2016-2020 2021-2025 2026-2030
LUZON 20 800 65 -
VISAYAS 30 150 - 60
MINDANAO - 230 90 20
Total 50 1,180 155 80

TOTAL Geothermal Capacity Addition (2013-2030): 1,465 MW

 Advantages
1. Environmentally Friendly
2. Renewable
3. Huge Potential
4. Sustainable / Stable
5. Heating and Cooling
 Disadvantages
1. Location Restricted
2. Environmental Side Effects
3. Earthquakes
4. High Costs
5. Sustainability
Geothermal Energy Future Development
 •Geothermal resources can be integrated into all types of
electrical power generation systems, from large,
interconnected continental transmission grids to onsite use
in small, isolated villages or autonomous buildings.
Technology
Improvement
• For technology improvement,
several prospects can reduce the
cost of producing geothermal
energy and lead to higher energy
recovery, longer field lifetimes,
and better reliability
Improvements in Exploration, Drilling and Assessment
Technologies

In exploration, R&D is required to locate hidden geothermal systems

Refinement and wider usage of rapid reconnaissance geothermal tools

such as satellite-based hyper-spectral, thermal infrared, high-resolution
panchromatic and radar sensors

Drilling must minimize formation damage that occurs as a result of a

complex interaction of the drilling fluid
 Geothermal Well at
Iceland Deep Drilling
Project
Geothermal energy captures the heat beneath our feet by harnessing hot
water or steam from the earth to power electricity-generating turbines. Its
production requires no fossil fuels, and the water can be injected back into
the ground for reuse.

Even when subsurface temperatures are not hot enough for electricity
production, geothermal energy can be tapped for direct use. Such uses
include industrial processes
 The U.S. Department of Energy
Geothermal Technologies Office’s
(GTO) GeoVision analysis found that
geothermal electricity generation has the
Investing potential to increase at least 26-fold by
2050.
in the Bringing more geothermal electricity
Future online by leveraging existing oil and gas
wells is a critical step to meeting the
nation’s goals of a carbon-free electric grid
by 2035 and net-zero emissions
economy-wide by 2050
Mak-Ban Geothermal
Power plant :a short
history
Contents
• short history

• construction
 Short History
The Makiling–Banahaw (Mak–Ban) Geothermal Power Plant was
developed to exploit the geothermal resources of the Mak–Ban or
Bulalo field. The Chevron Geothermal Philippine Holdings, Inc. under
a service contract with the state-owned National Power Corporation
(NPC) developed a geothermal station at the field which was
commissioned in 1979.The Mak–Ban facility followed the Tiwi facility in
Albay which first became operational in the same year.
Construction and Purpose
The MGPP was develop to utilize
the geothermal power in the
Macban or the Bulalo Geothermal
Field. this was to address the ever
growing need for power on the
Luzon grid.
 Construction and Purpose
● The discovery well (Bulalo-1) was
drilled in 1974, and commercial
production began in 1979 with an
installed plant capacity of 110 MWe
construction and
This was increased to 220
purpose
●

MWe in 1980, and 330 MWe in 1984 (Sussman, et

al.,
1993). Binary units totaling 15.73 MWe were
installed in
early 1994, and two 20 MWe generating units were
added
in 1995 (Units 7 and 8) and another two units in
1996
(Units 9 and 10), bringing installed capacity to
425.73
MWe
construction and
purpose

● In 2004-2005, Units 1-4 were rehabilitated and their

generation capacity was increased to 63.2 MWe each. The
installed capacity of Mak-Ban is now 458.53 MWe
 Chevron Geothermal
developers Philippine Holdings, Inc. (CGPHI)

owners Aboitiz Power Corporation

 as of 2010
the Mak-Ban field operation
has generated a total of 61,827 GWh of electricity
saving
the government from importing 114.67 million barrels
of
oil equivalent (MBOE)…
 Effects on the Community
This particulare Geothermal Power Plan
has a huge Impact to it’s community and
has Attracted by jobs Seekers and other
opportunist hoping to be associated with
the field’s development and operation, the
resident population within the developed
field area exploded tenfold from about
1,500 in 1979 to about 15,000 by 1996.
Mak-Ban
Overview
 Early Years
The Mak-Ban Geothermal Power Plant, short for the
Makiling-Banahaw Geothermal Power Plant, is located at
the foot of Mounts Makiling and Banahaw in the province of
Laguna and Batangas. The area is renowned for its
geothermal activity, making it an ideal location for harnessing
geothermal energy. The power plant was commissioned by
the National Power Corporation (NPC) of the Philippines.
 Commissioning
and Expansion
The Mak-Ban Geothermal Power
Plant began its commercial
operations in the early 1980s.
The initial phase of the project
involved the construction of
several geothermal power units.
Over the years, the plant
underwent expansions and
upgrades to increase its capacity
and efficiency.
Technology and Capacity

The plant utilizes advanced

geothermal technology to tap into
the Earth's natural heat to produce
electricity. Geothermal energy is a
renewable and environmentally
friendly source of power, making
Mak-Ban an essential part of the
Philippines' efforts to diversify its
energy mix and reduce dependence
on fossil fuels.
Significance and
Impact

Mak-Ban Geothermal Power Plant plays a vital role in the

Philippines' energy landscape. It provides a substantial
amount of electricity to the Luzon grid, helping meet the
region's power demands. Additionally, the plant's reliance
on geothermal energy contributes to reducing greenhouse
gas emissions, making it a sustainable energy source.
 Ownership and
Operation

The plant is owned and operated by the Aboitiz

Power Corporation, one of the largest and most
reputable power companies in the Philippines.
Aboitiz Power Corporation is actively involved in
various renewable energy projects, emphasizing the
importance of clean and sustainable energy
solutions.
 As of its last update in September 2021,
the Mak-Ban Geothermal Power Plant
continues to operate and contribute
Continued significantly to the Philippines' energy
sector. It is possible that there have
Development been further developments, expansions,
or initiatives related to the plant since
that time, which may not be included in
this overview.
HISTORY
Early Development and Construction (1970s-1980s)

The Mak-Ban Geothermal Power Plant project began

in the late 1970s when the Philippine government,
recognizing the country's abundant geothermal
resources, initiated efforts to harness this clean and
renewable energy. The National Power Corporation
(NPC) of the Philippines spearheaded the development
of the Mak-Ban Geothermal Power Plant in
collaboration with international energy companies and
organizations.
Construction of the power plant commenced in the
early 1980s, with the installation of geothermal wells
and the necessary infrastructure to tap into the
geothermal reservoirs beneath the Makiling-Banahaw
region. The plant was designed to leverage the natural
geothermal activity of the area to generate electricity.
Commercial Operations and Expansion (1980s-1990s)

The Mak-Ban Geothermal Power Plant became

operational in the mid-1980s, marking a significant
milestone in the Philippines' pursuit of renewable
energy sources. The initial phase of the plant featured
several geothermal units capable of producing a
substantial amount of electricity. This successful
operation prompted further investments and
expansions in the following years.
Throughout the 1980s and 1990s, the plant underwent
expansions and upgrades to enhance its capacity and
efficiency. Advanced geothermal technologies were
incorporated, allowing the facility to harness more
geothermal energy for electricity generation.
Ownership Changes and Continued Growth (2000s-Present)

In the early 2000s, ownership of the Mak-Ban

Geothermal Power Plant underwent changes, with the
Aboitiz Power Corporation, a leading power company in
the Philippines, acquiring a significant stake in the
facility. Aboitiz Power, known for its commitment to
renewable energy, continued to invest in the plant's
infrastructure, ensuring its competitiveness and
sustainability in the evolving energy market.
Technological Advancements and
Environmental Impact

The Mak-Ban Geothermal Power Plant has benefited

from ongoing advancements in geothermal technology,
improving efficiency and reducing environmental
impact. Geothermal energy is a crucial component of
the Philippines' energy mix, providing clean and
reliable electricity to the Luzon grid.
As of its last update in September 2021, the
Mak-Ban Geothermal Power Plant continues to
operate as a vital renewable energy facility in the
Philippines. Please note that there may have
been further developments or initiatives related
to the plant since that time, which might not be
included in this brief history.
Geothermal in the
Philippines–an
urgent revamp of
targets and
development
needed
• The Philippines keeps
dropping in renewable
energy deployment despite
ambitious targets.

• Targets, strategy, and

approach to foster
development are needed,
particularly for a key
resource in the
country–geothermal
energy.
Energy source that has the potential to make a
difference in the Philippines is geothermal.

Southeast Asia is home to 25 percent of the world’s

geothermal generation capacity.

Most, if not all of this geothermal capacity is

located in the Philippines and Indonesia.
In 2018, the country dropped in the global rankings for
geothermal countries, just behind Indonesia.

This prompted the Philippines to consider revamping its

geothermal development again.

The Philippines currently has seven geothermal fields

which supply about 12 percent of the nation’s energy,
with a long-term plan to nearly double capacity by 2040.
 • Targeting geothermal, the
Philippines Department of
Energy has set targets for
geothermal power generation
capacity additions:
•> Short term 183 MW (2016-2020)
•> Medium-term 900 MW (2021 to
2025)
•> Long-term 288 MW (2026 to 2030)
However, despite the potential of geothermal resources
in the Philippines, there are still a number of factors
contributing to a decline in investments:

1. Unattractive incentives package compared to other

countries

2. A privatized energy sector

3. Tedious permitting processes

4. A lack of potential investors who are willing to take the

risk.
• Energy Development Corporation (EDC)
believes that geothermal is the key to
establishing a stable energy baseload
suited to the constant yet dynamic power
needs of the Philippines’ developing
economy.
• The overall renewable energy power
generation capacity stood at 5,438 MW in
2010 (with about 35% represented by
geothermal) with a target of 15,000 MW
by 2030.
• So proposals are made to increase the
target to 20,000 MW to realistically reach
the set energy mix targets.
 Source: Geothermal Resources Council
(https://geothermalresourcescouncil.blogspot.com/2017/04/philippines-geothermal_27.html)
The Criteria for Suitable
Location of Geothermal
Power Plant
Source: IEEE
https://ieeexplore.ieee.org/document/7967356
Geothermal power plant designs are unique when
compared to conventional power plants, and
design features among them can differ
significantly.

Key technical considerations for proper plant

design include reservoir conditions
(production/injection characteristics, enthalpy,
chemistry, and noncondensible gasses), plant
siting (topography, access, geotechnical
characteristics, and transmission) and
environmental conditions (meteorological data
and plant emissions)
The main factors determining
influence on location of geothermal
power plants are:
• the temperature and the capacity
of the source
• the depth of resources available
• the degree of mineralization of
water sources as well as their
efficiency.
 Global Geothermal Power Plant Map Overview
Source: https://www.thinkgeoenergy.com/geothermal-power-generation-capacity-at-12000-mw-worldwide/
 GLOBAL MAP TO IDENTIFY AREAS SUITABLE FOR GEOTHERMAL POWER PLANTS
Under a scientific collaboration between the Institute of Information Science and Technologies (Cnr-Isti) and the Institute of Geosciences and Georesources (Cnr-Igg),
researchers have created a global map, showing suitability of an area for the installation of a highly efficient geothermal power plant. (source: CNR)

Source: https://www.thinkgeoenergy.com/global-map-to-identify-areas-suitable-for-geothermal-power-plants/
Source: https://www.thinkgeoenergy.com/thinkgeoenergys-top-10-geothermal-countries-2022-power-generation-capacity-mw/
LOCATION CONSIDERATIONS:
Geothermal Proximity to
Temperature
Resource Demand
and Depth
Availability Centers

Regulatory and
Infrastructure Environmental
Permitting
and Access Impact
Requirements

Land Ownership Water

Seismic Activity
and Rights Availability

Market Local
Resource
Conditions and Community
Sustainability
Economics Engagement

Climate
Grid Integration
Conditions