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Japan Over the past decade, efforts to develop additional geothermal power plants in Japan had been minimal as the national policy favored production of electricity from nuclear power. However, in the wake of the Fukushima disaster Japan’s government reassessed its energy policy and is shifting its focus from nuclear energy to power production from renewable energy resources such as solar, wind, and geothermal power. In order to drive the development of renewable resources, the Japanese Ministry of Economy, Trade and Industry (METI) is considering a plan to implement feed-in tariffs for renewable technologies. Under the current proposal, the feed-in tariff for geothermal energy generation in Japan would be set at approximately 0.53 US$/kWh and 0.35 US$/kWh for power plants with less than 15 MW and greater than 15 MW of installed capacity respectively. The tariffs will be opened to public comment after METI issues a rule on them at the end of May 2012. The tariffs are expected to go into effect in July 2012.18 Japan has twenty operating geothermal power plants with a total installed capacity of 535 MW. Geothermal is responsible for approximately 0.2 percent of electricity generation in Japan, but with an estimated 23,000 MW of geothermal energy, opportunities to further develop Japan’s geothermal resources abound. Until recently, access to Japans geothermal resources was restricted due to the fact that a significant portion is located within national park land. However, in March 2012 Japan’s Ministry of the Environment stated that, under certain conditions, it would allow vertical drilling for geothermal resources in its national parks. Easing the restrictions on geothermal drilling in national parks alone could open up 1,000 MW of geothermal resources to development according to one estimate.19 The energy industry appears ready to take advantage of Japans renewed appetite and support for domestic geothermal energy development. A group of Japanese companies including Idemitsu Kosan Co., Inpex Corp., Mitsubishi Materials Co., Japan Petroleum Exploration Co., and Mitsubishi Oil Exploration Co. have formed a consortium to develop up 270 MW of geothermal resources in Fukushima.20 Philippines A growing population and economy are driving the need for increased development of the Philippines energy resources and infrastructure. Economic growth in the Philippines has averaged 5 percent in the past 10 years, with growth reaching as high as 7.6 percent in 2010. The Philippines Department of Energy anticipates that demand for electricity will double in the next 20 years fueled by growth in its industrial and transportation sectors.21 In the midst of this growth the Philippines’ energy sector has been confronted with challenges. A reliance on hydropower in certain regions makes the country vulnerable to drought induced power shortages.22 Additionally, central and southern parts of the Philippines suffer from lack of access to reliable generation and electricity prices remain high throughout the country.23 In order to meet growing electricity demand, reduce dependency on fossil fuels, and increase its energy overall energy security the Philippines is promoting the development of its renewable energy resources, including geothermal. In its 2009 – 2030 Energy Plan, the Philippines set a target to increase operating geothermal capacity from 1,972 MW to 3,447 MW for an increase almost 1500 MW.24 To facilitate the development of its geothermal resources, the Philippine government has taken a number of steps to 7PDF Image | Geothermal International Market Report
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