Lipa city: The Philippines is setting its sights on reclaiming the second position globally in geothermal energy production. This ambitious goal comes as the government intensifies its shift towards renewable energy, supported by a PHP10.7 billion de-risking facility aimed at boosting geothermal exploration and development.
According to Philippines News Agency, Energy Secretary Garin addressed the 7th Philippine International Geothermal Conference in Lipa City, Batangas, highlighting the country's untapped potential of 2,100 megawatts (MW) in geothermal energy. Currently, the Philippines boasts an installed geothermal capacity of approximately 2,057 MW, contributing about 6.4 percent to the nation's electricity generation by 2025.
Despite currently ranking third in the world, after the United States and Indonesia, Secretary Garin emphasized the opportunity for advancement, pointing to the Unified Leyte Geothermal Power Plant as the largest in Asia. 'Under the leadership of President Ferdinand (R.) Marcos Jr., our goal is clear to regain that position by accelerating exploration in frontier areas and bringing new geothermal capacity into development,' she stated.
The Department of Energy (DOE) and the Land Bank of the Philippines have entered into a memorandum of agreement for the USD170-million Philippine Geothermal Resource De-Risking Facility. This facility, funded through a sovereign loan from a Manila-based multilateral lender, is designed to finance geothermal exploration by converting successful projects into loans and unsuccessful ones into grants.
Secretary Garin further explained that the funding is expected to augment domestic geothermal capacity by around 300 MW. These projects will undergo an assessment by the DOE before implementation. DOE Chief Science Research Specialist Rainier Halcon announced plans for a public consultation in October, followed by a call for proposals next month, with drilling projected to commence by 2028.
Halcon noted that achieving the additional 300 megawatts in installed capacity with the de-risking facility's support could elevate the Philippines to second place, provided Indonesian power plants do not come online. He added that the facility could expedite the commercial viability of priority projects by at least three years, targeting completion between 2028 and 2033.
Secretary Garin expressed confidence in the current fund levels of the de-risking facility, which she believes are sufficient to raise geothermal power's share in the energy mix to the ideal 10 percent. 'I think if we do it (the assessment and eventual operation of the projects) properly, and most of these are successful, we won't have a problem accessing other funds,' she concluded.
