SINGAPORE — The Department of Energy (DOE) is preparing a new bill aimed at attracting more investment in geothermal power projects in the Philippines, Energy Secretary Sharon Garin said on Tuesday during the Singapore International Energy Week.
Garin explained that geothermal energy development is more costly than other renewable sources because it can generate power continuously. To encourage investment, the proposed law will provide additional fiscal and non-fiscal incentives, though she did not specify the details.
Currently, geothermal projects benefit from inclusion in the government’s Green Energy Auction (GEA) program, which offers fixed power rates through competitive bidding. The DOE is also planning a de-risking fund to support drilling activities, offering grants that will be converted into loans only if a project becomes commercially viable.
Meanwhile, Energy Undersecretary Felix William Fuentebella said the government will launch gradiometric surveys—covering parts of the Visayas and Mindanao—to identify potential geothermal resource areas for investors. The surveys, funded by the government, will help map underground formations that may indicate geothermal energy potential.
The DOE is seeking congressional funding for the surveys, which Garin described as expensive but promising high returns. Private firms will handle exploration once the areas are identified.
As of July 2025, the Philippines had 31,701 megawatts (MW) of installed power capacity, with 2,004 MW—or about 6.3 percent—coming from geothermal sources. The country remains the world’s third-largest producer of geothermal energy, after the United States and Indonesia.
