Jul 12 - McClatchy-Tribune Regional News - Euan Paulo C. Anonuevo The Manila Times, Philippines

The Department of Energy expects to award another geothermal and at most five coal exploration contracts in the coming weeks.

Energy Secretary Angelo. Reyes said the agency is keen on offering a prospective geothermal site in Kalinga province that has a potential capacity of 100 megawatts of electricity.

He said the agency is studying this move to hasten the development of energy projects in the country as a means to lessen its reliance on imported oil.

Recently, the department awarded three geothermal service contracts to Guidance Management Corp., Biliran Geothermal, Inc. and Basic Energy Corp. to explore and develop areas in Compostela Valley, Biliran and Batangas, respectively.

Each of the areas has a target capacity of 20 to 40 megawatts once fully developed.

Besides the recently awarded deals, the department is preparing to sign three coal exploration projects next month, Energy Undersecretary Ramon Oca said.

He said another two coal contracts are pending approval, without naming the winning proponents.

The department is pushing for the development of the coal industry to fill in the country's power needs in the short-term as it may take awhile for renewable energy sources to contribute to supply.

Reyes said that although coal offers a cheaper alternative to oil for power generation, the country imports almost 90 percent of its needs to fuel a number of large power plants.

President Arroyo recently ordered Reyes to fast-track the awarding of the exploration contracts to mitigate the effects of high crude prices.

The government holds public auctions for geothermal, petroleum and coal exploration projects under the so-called Philippine Energy Contracting Round (PECR), the last of which was held almost two years ago. The results of past auctions however had languished at the Energy department since Reyes assumed the agency's top post.

An energy department official said that bidding rounds have yet to push through since its third exercise in 2006 because of "manpower" changes in the agency. During the said PECR, nine petroleum, three geothermal and 14 coal exploration areas were offered to private investors.