Manila: The Philippines is setting its sights on significantly increasing its geothermal energy capacity, as part of a broader move to enhance the share of renewable energy (RE) in the country’s power generation mix. Energy Secretary Sharon Garin emphasized the importance of leveraging new technologies and government support to achieve this goal during her remarks at the Singapore International Energy Week (SIEW).

According to Philippines News Agency, geothermal energy currently constitutes approximately 8.5 percent of the Philippines’ power generation mix, in stark contrast to the more than 60 percent reliance on coal. The Philippine Energy Plan (2023-2050) aims to elevate the share of renewable energy to 35 percent by 2030 and 50 percent by 2040, underscoring the need for a strategic push in geothermal energy development.

In a recent development, the Department of Energy (DOE) awarded 27.218 MW of geothermal energy under the third green energy auction (GEA-3) last June. Despite its low current share, the Philippines ranks as the third-largest producer of geothermal energy globally, with an installed capacity of around 1,935 megawatts (MW), following the U.S. and Indonesia.

Secretary Garin highlighted ongoing measures to encourage geothermal projects, including the inclusion of geothermal power in the Green Energy Auction and plans for a derisking facility to mitigate the costs of new projects. Proposed higher funding for gradiometric surveys in the Visayas and Mindanao regions aims to identify potential geothermal power production areas.

Garin also noted that a derisking facility is expected to be operational by December, supported by the Land Bank of the Philippines (Landbank) and potentially managed by the Asian Development Bank (ADB). This facility, valued at approximately USD250 million, will offer grants for unsuitable projects or loans for viable ones, thus encouraging future investments.

Jay Joel Soriano, Vice President and Head of Strategy and Planning at First Gen Corporation, expressed optimism about the government’s commitment to the sector through the derisking facility. Soriano projected that the untapped geothermal capacity could reach “a few thousand megawatts,” contingent on the adoption of new technologies for power plant operations.

He emphasized the need for the Philippines to explore nascent technologies, such as low enthalpy wells and closed-loop cycles, to maintain its leadership position in geothermal energy production.