Overview
The objective of the Nasulo Geothermal Project was to help mitigate global climate change by facilitating the use of market-based mechanisms sanctioned under the Kyoto Protocol through support to clean energy projects in the Philippines. The project assisted the Philippines in stimulating and accelerating the commercialization of renewable energy applications and markets at the grid-connected level in order to reduce greenhouse gas (GHG) and other emissions, while responding to increasing energy demand and the need for energy diversification.
The Philippines is heavily dependent on imported fossil fuels for its energy supply. The proposed 20 MW geothermal energy project significantly reduced the need for equivalent capacity of fossil fuel-based generation to meet the projected power shortfall in the Visayas region, thus mitigating greenhouse gas emissions.
The project has been well received by the local communities as it is viewed as an addition to the existing geothermal operations which are already providing local benefits. The key stakeholders of the project are the National Government of the Philippines, the host Local Government Units and residents of Barangay Puhagan, Municipality of Valencia and Province of Negros Oriental.
Benefits
The project contributed to the country’s sustainable development objectives. On the one hand, it contributed to the reduction of the country’s reliance on imported fuel and the stabilization of electricity costs by developing an indigenous and environmentally friendly energy source. On the other hand, it contributed towards the global objective of mitigating climate change caused by GHG emissions.
The local governments and residents benefited from increased royalty receipts and other law-mandated funds from the project. In addition to the law-mandated benefits, the project sponsor has been organizing local communities and providing them with alternative livelihood under its Watershed Management Program. The sponsor has developed very positive and close relationships with the surrounding communities within and outside the geothermal reservation.