ALBAY: Asia's first commercial-scale geothermal steam field, which was discovered 50 years ago in a quiet and small town in Albay province, continues to provide clean and renewable energy to 2.7 million homes in the Philippines.

The geothermal field has also been instrumental in the development of Albay, specifically in the remote municipality of Tiwi which was once considered as the poorest town in the province.

Mayor Jaime Villanueva said Tiwi transformed from being a sixth class town into a first class municipality in 1996. Tiwi currently has an income of over P200 million annually, including the internal revenue allotment (IRA).

Geothermal is the biggest industry in Tiwi and a major source of local employment.

The Philippine Geothermal Production Corp. (PGPC), which operates the plant, and its partners have been complying with the Tiwi First Policy which requires businesses to prioritize the employment of the town's residents.

More than half of PGPC's personnel, 58 percent, originated from Tiwi and 62 percent are currently residing within the town, according to the latest data.

Villanueva said the partnership between the local government and the PGPC resulted in the industrialization of their town, thus, helping develop the skills of the residents in construction, mechanical and drilling works.

The mayor said the operations at the Tiwi steam fields provide subsidies to 16 villages through the national wealth fund. This fund can be used to lower electricity rates by at least 80 percent.

PGPC also provides scholarships to students.

Birth of geothermal

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