Philippines Looks To Reignite Geothermal Drive To Power A Greener Future
- November 14, 2025
The Philippines faces the risk of slipping behind in the global geothermal arena as regional rivals ramp up investments in next-generation geothermal technologies. Energy stakeholders say stronger government support is crucial if the country is to retain its position as one of the top three geothermal producers globally.
At the Asia Clean Energy Summit 2025 in Singapore, First Gen Corp. vice president Jay Joel Soriano said the perception of geothermal energy as an “old technology” has limited policy momentum in recent years. “Since the country considered geothermal as an ‘old technology,’ the sector was not seeing broad government support,” Soriano told reporters.
Calls For Policy Boost
Soriano noted that only recently was geothermal included in the fourth round of the Green Energy Auction Program (GEAP), which is a Department of Energy (DOE) initiative that sets fixed rates for renewable projects to attract private investment.
He expressed optimism about the rollout of a planned $250-million de-risking fund, designed to reduce the financial burden on developers exploring new geothermal sites. Exploration costs are notoriously high, and developers currently shoulder the full risk of unsuccessful drilling.
“I think if they can help us de-risk that upfront investment, then it will pave the way to more and more developments in the Philippines,” Soriano said. “The sooner help comes, the better.”
Energy Secretary Sharon Garin, who also attended the Singapore summit, confirmed that the DOE was finalizing the agreement with Land Bank of the Philippines to operationalize the facility. “Soon enough, we will have that,” Garin said at the recent Singapore International Energy Week. “Hopefully, this will encourage more developers to embark on geothermal exploration.”
Push For Innovation
As one of the country’s largest renewable energy firms, First Gen sources most of its clean power from geothermal facilities under its subsidiary Energy Development Corporation (EDC). The company has been exploring international technology partnerships to help modernize local geothermal operations and tap low-temperature or enhanced geothermal systems.
“The traditional geothermal technology still makes sense,” Soriano said. “But to expand, to retain our leadership position, I think we need to start looking at other technologies — technologies that are still quite nascent, technologies that have potential in the Philippines.”
Industry observers suggest that with technologies such as enhanced geothermal systems and closed-loop designs, previously uneconomical or smaller geothermal sites could become viable sources of stable, renewable baseload power. These could be useful, particularly in geothermal plants slated for repurposing.
A Rich Resource
Despite being a mature energy source, geothermal remains the Philippines’ most reliable form of renewable baseload power. But as the government aims to raise renewables’ share in the power mix to 50 percent by 2040, reinvigorating geothermal exploration will be essential.
The country’s natural advantage stems from its location along the Pacific Ring of Fire, a tectonically active zone where intense geological activity generates vast underground heat reservoirs. All the top 10 geothermal-producing countries are situated in similar regions, allowing developers to tap high-heat zones just beneath the earth’s surface and convert that energy into steam that drives turbines and produces electricity.
This geological edge has long made the Philippines a natural hub for geothermal innovation. While the Philippines remains among the top three globally, the gap is narrowing as neighboring nations integrate geothermal into broader climate transition plans, which is why government support is key in optimizing our rich resource of geothermal energy.
Source:
https://business.inquirer.net/555076/geothermal-energy-needs-more-support-first-gen
https://www.philstar.com/business/2025/07/24/2460168/first-gen-going-full-steam-geothermal
