Philippines Targets $12.6 Billion Geothermal Wealth Amid Global Race

MANILA, Philippines — Seeking to regain its global geothermal standing, the Philippines is setting its sights on unlocking roughly $12.6 billion (about P787.9 billion) worth of untapped geothermal potential. Energy Secretary Sharon Garin said the country has around 2,100 megawatts (MW) of additional geothermal potential that remains to be explored and developed. Harnessing this massive potential, however, would require an estimated investment of $6 million for every MW, Garin said. “It’s (geothermal energy) the best resource because we have the geology for it,” she said during the 7th Philippine International Geothermal Conference hosted by the National Geothermal Association of the Philippines yesterday. The Philippines currently has 2,057 MW of installed geothermal capacity, ranking third globally in terms of geothermal power production. For many years, the country held the second spot, behind only the United States, before it was overtaken by Indonesia in 2018. “Identifying geothermal resources is only the beginning. Bringing them into development requires significant capital, with some of the greatest risks occurring during exploration and drilling,” Garin said. “Addressing this early-stage risk is therefore critical to attracting investment and moving prospective resources into development,” she said. To help ease the financial risks associated with geothermal exploration, the government is rolling out a P10.7-billion geothermal resource derisking facility. Under the mechanism, geothermal developers will receive cost-shared exploration support covering up to 50 percent of drilling costs through convertible loans. If drilling efforts prove unsuccessful, the funding will be converted into grants. “We need the momentum to encourage more investments,” Garin said, acknowledging that the existing derisking fund is insufficient to cover the exploration costs for the entire 2,100-MW untapped potential. The current funding, she added, is enough to support projects totaling only around 300 MW, while unlocking the full potential would require an additional P60 billion. At least 12 geothermal service contracts are currently lined up to secure a share of the government-backed financing mechanism. One of these projects is being explored by Lopez-led Energy Development Corp., the country’s largest geothermal player. EDC business development head Marvin Kenneth Bailon told reporters yesterday that the company is seeking support from the derisking fund for the Amacan geothermal power plant in Mindanao. The company currently owns and operates at least 16 geothermal plants, accounting for more than half of the country’s total installed geothermal capacity.