Philippines aims to reclaim spot as 2nd biggest geothermal producer

MANILA, Philippines — The Department of Energy (DOE) hopes the Philippines will regain its position as the world’s second largest producer of geothermal energy with nearly 400 megawatts (MW) of potential additional capacity.

DOE Undersecretary Rowena Cristina Guevara said the Philippines, which has been developing geothermal power since 1970s, had been the second biggest producer of geothermal energy in the world until Indonesia outranked the country in 2018.

Guevara said the Philippines is currently ranked as the third largest producer next to Indonesia and the US.

“The development and utilization of geothermal energy slowed down since 2007 and only 86 MW was added in the total installed despite the enactment of Republic Act 9513 or the Renewable Energy Act of 2008,” she said.

Guevara, however, said three geothermal energy projects with a combined capacity of 48 MW are under construction and are expected to be online by December.

These are the 17-MW Tiwi binary geothermal power plant, 29-MW Palayan binary power plant and two-MW Biliran geothermal power plant.

Guevara said the 5.6-MW Bago binary geothermal power plant and the 20-MW Tanawon geothermal power plant are slated to be online by next year.

On top of these projects, Guevara said there is also a total of 381 MW additional capacity from projects that are undergoing pre-feasibility studies.

“Once we do these 381 MW, maybe we can be number two again,” she said.

Guevara said recent geothermal inventory efforts of the DOE found that there are 145 geothermal areas in the country, while only seven fields are in operation.

“We want these potential capacities to be developed and we need your support as a national organization to further explore the potential of geothermal energy in the country,” Guevara told members of the National Geothermal Association of the Philippines.

“We need the expertise and innovation of our renewable energy developers, particularly the geothermal energy developers. Your cooperation and invaluable inputs to further advance the development of emerging technologies for geothermal will be of great help not only to DOE but to all the Filipinos,” she said.

Guevara said geothermal continued to dominate the country’s renewable energy mix in 2022 with a 9.3 percent share in the total gross power generation.

Despite the slowdown in the development of geothermal energy based on the Philippine trend, she said its contribution to the country’s power requirement remains strong as it provides 10,000 gigawatt-hours.

Fitch Solutions Country Risk & Industry Research in a report last year said geothermal power would be the dominant source of non-hydropower renewable electricity output in the Philippines over its 10-year forecast period, accounting for an annual average share of 64 percent of total renewable power generation.

However, it is bearish on the future growth prospects of geothermal power capacity in the country, given that most of the market’s proven reserves have been commercialized while the unproven potential reserves of just under 2.4 GW are in more inaccessible areas.

Nonetheless, Fitch Solutions noted that the Philippine market has upside risk for new growth following renewed interest in the technology.

“That said, geothermal exploration is on the rise, presenting an upside risk to our subdued geothermal capacity and generation forecasts,” it said.

Meanwhile, Guevara said the DOE has also implemented projects to accelerate the development of low to medium enthalpy geothermal resource area mainly for power generation.

She said the projects are aimed at assessing the economic feasibility of small-scale geothermal power projects for local power needs, as well as preparing the comprehensive data package showcasing such type of geothermal resource for future private investor participation.

“This path to greener geothermal generation will have its challenges, but it is a path that we will walk together so we can build a future when clean energy is not just a necessity, but a legacy of responsible stewardship for generations to come,” Guevara said.