First Gen says government support key to advancing geothermal development - BusinessWorld - BusinessWorld Online
Published December 31, 2025
First Gen Highlights Importance of Government Support for Geothermal Development
First Gen Corporation has emphasized the critical role of government backing in the advancement of geothermal energy projects in the Philippines. This assertion was made during the company’s recent presentation at the Philippine Geothermal Energy Summit 2023, where industry leaders gathered to discuss the future of geothermal energy in the country.
As the largest producer of renewable energy in the Philippines, First Gen has been at the forefront of geothermal development, operating several geothermal power plants across the nation. The company’s geothermal facilities contribute significantly to the country’s energy mix, providing clean and reliable energy to meet the growing demand.
Government Initiatives and Support
First Gen’s executives noted that the Philippine government’s initiatives are vital for enhancing geothermal energy production. They highlighted the need for regulatory frameworks that support exploration and development activities. This includes policies that facilitate the issuance of exploration permits and streamline the approval processes for geothermal projects.
During the summit, First Gen’s President and COO, Francis Giles B. Puno, pointed out that the government’s support can help accelerate investments in the geothermal sector. He underscored the importance of creating an environment conducive to investment, which would ultimately lead to increased geothermal capacity and energy security for the country.
Geothermal Energy Potential in the Philippines
The Philippines is recognized as one of the world’s top producers of geothermal energy, ranking third globally in installed capacity. The country has an estimated geothermal potential of around 4,000 megawatts (MW), with only about 1,900 MW currently developed. This indicates significant room for growth in the geothermal sector, which can be harnessed with the right government support and investment.
First Gen has been proactive in expanding its geothermal portfolio. The company operates the 1,200 MW Leyte Geothermal Production Field, which is a key contributor to the country’s renewable energy supply. Additionally, First Gen is involved in ongoing exploration activities to identify new geothermal resources that could further enhance its energy offerings.
Challenges Facing Geothermal Development
Despite its potential, the geothermal sector in the Philippines faces several challenges that must be addressed to unlock further development. First Gen’s executives pointed out that lengthy permitting processes and regulatory uncertainties can deter potential investors. They called for the government to simplify these processes and provide clearer guidelines to facilitate faster project approvals.
Moreover, the initial capital investment required for geothermal projects is substantial, which can be a barrier for new entrants into the market. First Gen advocates for financial incentives and support mechanisms that can help lower the financial risks associated with geothermal exploration and development.
Collaboration with Stakeholders
First Gen believes that collaboration among various stakeholders is essential for the growth of the geothermal sector. This includes partnerships between the government, private sector, and local communities. Engaging with local communities is particularly important, as it helps to address any concerns and ensures that the benefits of geothermal projects are shared equitably.
The company has demonstrated its commitment to community engagement through various initiatives aimed at promoting sustainable development and enhancing the livelihoods of local residents. These efforts include providing job opportunities, supporting education, and investing in local infrastructure.
Future Outlook for Geothermal Energy
Looking ahead, First Gen remains optimistic about the future of geothermal energy in the Philippines. The company is committed to increasing its renewable energy capacity and believes that with the right government support, the geothermal sector can play a pivotal role in the country’s energy transition.
The Philippine government has set ambitious targets for renewable energy, aiming for a 35% share of renewables in the energy mix by 2030 and 50% by 2040. Achieving these targets will require significant investments in geothermal and other renewable energy sources. First Gen is well-positioned to contribute to these goals, leveraging its expertise and experience in the geothermal sector.
Conclusion
In conclusion, First Gen Corporation has reiterated the importance of government support in advancing geothermal development in the Philippines. By addressing regulatory challenges, fostering collaboration among stakeholders, and investing in local communities, the country can unlock the full potential of its geothermal resources. With a strong commitment to renewable energy, First Gen aims to lead the way in the sustainable development of geothermal energy, ultimately contributing to a cleaner and more secure energy future for the Philippines.
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