Renewable Energy Act of 2008: Legal and Fiscal Implications to Philippine Geothermal Exploration and Development Atty. Fernando S. Peñarroyo Trustee, National Geothermal Association of the Philippines
All water, minerals, all forces of potential energy, and other natural resources are owned by the state. The exploration, development and utilization of these natural resources are under the full control and supervision of the State.
The State has the option of entering into co-production, joint venture or production sharing agreements with Philippine citizens of Philippine corporations or associations (at least 60% of the capital owned by Filipinos).
If an investor wishes to acquire the right to extract or develop natural resources, he must enter into an agreement with State. PD 1442 laid out the legal framework for geothermal energy agreements.
Geothermal energy exploration proponents are required to conduct consultations with legislative councils of LGUs concerned
E.R. No. 1-94 prescribed direct benefits to LGUs hosting energy resource development projects and/or energy generating facilities within their territorial jurisdiction. Generation facility shall allocate one centavo per kilowatt-hour of the electricity sales as direct benefits to host LGU.
Exception to the nationality requirement: The Constitution authorizes the President to enter into agreements with foreign-owned corporations involving either financial or technical assistance, for large- scale exploration, development and utilization of minerals, petroleum and other mineral oils.
No provisions that will facilitate the acquisition by RE developers of auxiliary rights like timber rights, water rights, easement rights and entry into private lands and concession areas - complicated approval and permitting process
Geothermal resource development in protected areas