SINGAPORE — First Gen Corp. has called for stronger government support to accelerate geothermal energy development in the Philippines and maintain the country’s position among the world’s leading producers.
Jay Joel Soriano, vice-president and head of strategy and planning at First Gen, said on the sidelines of the Asia Clean Energy Summit here that geothermal has not received sufficient policy attention in recent years.
“When the government looks at geothermal, they see it as an old technology, which is why for the longest time, we haven’t been receiving any government support,” he said.
He said geothermal development has recently regained policy focus with the launch of the government’s fourth green energy auction, which offers renewable energy developers the opportunity to secure power supply contracts through competitive bidding.
The Philippines has an installed geothermal capacity of 1,952 megawatts (MW), making it the world’s third-largest producer.
“From a technology standpoint, we’re seeing that traditional geothermal still makes sense, but to expand and retain our leadership position, we need to start looking at other technologies that are still quite nascent,” Mr. Soriano said.
He noted that geothermal projects require substantial upfront investments to confirm viable resources.
“Our costs are heavily skewed up front — capital investments to build roads, to drill two or three wells even before we know there’s something we will find. These are heavy capital investments,” he said.
The government plans to launch a $250-million geothermal derisking facility by the second half of 2026 to help address exploration risks. The facility is designed to share the cost of exploration and drilling, covering up to 50% of expenses through loans convertible to grants if drilling fails.
First Gen, one of the country’s largest renewable energy developers, has around 1,300 MW of renewable capacity from geothermal, solar, and wind.
It also operates natural gas-fired power plants in Batangas with a combined capacity of 2,017 MW. — Sheldeen Joy Talavera