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CASE STUDY: PHILIPPINES—GEOTHERMAL POWER Geothermal capacity of 385 MW was installed, 59 producer and injector wells were drilled (9 percent fewer than the appraisal estimate of 65 wells), and construction of steam-gathering systems and related subtransmission systems was completed on schedule in mid-1997. The capacity developed is lower than the appraisal estimate of 440 MW because the Alto Peak sector proved problematic and was abandoned. Nevertheless, the combined system surpasses the required annual energy output specified under the agreement with NPC, with the power plants operating within the plant factor commitment in the build-operate-transfer contract. Further, the project significantly mitigates GHG emissions, as an alternative coal-fired based plant would have meant incremental CO2 emissions of about 2.2 million tonnes per year. Overall, the output of the geothermal project component has been rated as highly satisfactory. Project Title: Republic of the Philippines Leyte-Luzon Geothermal Project GEF Agency: Cofinancing OBJECTIVE World Bank US$1,303 million GEF US$30 million Dates of Implementation: 1995–2000 The project aimed to: (1) meet the rapidly increasing demand for power in Luzon using indigenous and environmentally superior geothermal energy; (2) strengthen the energy sector by implementing institutional, planning, and financial improvements recommended by the Energy Sector Plan; (3) support large ongoing private sector participation in power generation, and facilitate it by extending the national grid; (4) strengthen National Power Corporation’s (NPC) capabilities in environmental and social impact analyses; (5) introduce enhanced cofinancing operations in the Philippines; and (6) ensure the financial viability of NPC and Philippine National Oil Corporation for undertaking a long overdue investment program. OUTCOMES Although the GEF grant of US$30 million seems small in the overall investment of US$1.3 billion, it has been critical to the investment decision and has influenced the government’s preference for geothermal over coal. 232-MW Malitbog geothermal power plant in Philippines 22 THE GLOBAL ENVIRONMENT FACILITYPDF Image | INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE
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