$60B needed to tap geothermal resources
The Philippines needs an estimated $60 billion in investments to fully develop its 2,100 megawatts of untapped geothermal resources. Energy Secretary Sharon Garin announced this at the Philippine International Geothermal Conference. The government has secured an initial P10 billion de-risking facility to support exploration for about 300 MW of additional capacity. This facility aims to mitigate the high upfront costs and uncertainties associated with geothermal drilling. Twelve active geothermal service contracts have been identified as potential beneficiaries, focusing on greenfield exploration projects.
The Philippines' pursuit of 2,100 MW in undeveloped geothermal capacity, requiring $60 billion, reflects a strategic push for energy independence and grid stability. The P10 billion de-risking facility is a critical first step, targeting 300 MW of new capacity by addressing the high upfront costs of exploration. This initiative could significantly boost the country's power supply, as geothermal plants offer continuous, baseload electricity. The Department of Energy aims to increase geothermal's contribution to national electricity generation from 6.4 percent in 2025 to 10 percent. The success of this initial program is crucial. Proper implementation and careful project selection, as emphasized by Secretary Garin, will determine if other financial institutions beyond the Asian Development Bank are encouraged to invest. The focus on greenfield exploration projects under 12 active service contracts points to a long-term vision, but the substantial investment needed for full potential means sustained policy support and private sector confidence are essential for the Philippines to meet its ambitious energy targets.
