Geothermal projects heat up in Philippines, Indonesia amid energy transition - Reccessary
Published December 15, 2025
Geothermal Initiatives Gain Momentum in the Philippines and Indonesia Amid Energy Transition
The geothermal energy sector in Southeast Asia is witnessing significant growth, particularly in the Philippines and Indonesia, as these nations seek to diversify their energy portfolios and transition towards more sustainable energy sources. With increasing investments and new projects on the horizon, both countries are positioning themselves as leaders in geothermal energy development.
According to the Geothermal Energy Association, the Philippines is the third-largest producer of geothermal energy in the world, following the United States and Indonesia. The country has a total installed capacity of 1,968 megawatts (MW) as of 2021, contributing significantly to its energy mix. Meanwhile, Indonesia ranks first globally with an installed capacity of approximately 2,133 MW, showcasing the region's potential for geothermal energy generation.
Recent Developments in the Philippines
In the Philippines, several geothermal projects are in various stages of development, driven by the government's push for renewable energy sources. The Department of Energy (DOE) has set ambitious targets to increase the share of renewable energy in the country's power generation mix to 35% by 2030 and 50% by 2040. Geothermal energy is expected to play a crucial role in achieving these goals.
One of the key projects is the development of the 50 MW Maibarara Geothermal Power Plant, which is currently under construction in Batangas province. This facility is expected to be operational by the end of 2023 and will provide clean energy to thousands of households. Additionally, the DOE has awarded several geothermal service contracts to various companies, facilitating further exploration and development of geothermal resources across the archipelago.
Furthermore, the Philippine National Oil Company (PNOC) is actively exploring new geothermal sites, including the potential expansion of existing plants and the discovery of new resources. The government is also encouraging private sector participation in geothermal development, offering incentives and support for investments in renewable energy projects.
Indonesia's Geothermal Landscape
Indonesia's geothermal sector is also experiencing a surge in activity, with several large-scale projects underway. The government has set a target to generate 7,200 MW of geothermal energy by 2025, which would significantly contribute to the country's renewable energy goals. The Energy and Mineral Resources Ministry has identified over 30 geothermal working areas, highlighting the vast potential for development.
One notable project is the 110 MW Sarulla Geothermal Power Project, which is one of the largest geothermal plants in the world. Located in North Sumatra, this facility is expected to be fully operational by 2024 and will play a critical role in supplying clean energy to the national grid. Additionally, the Wayang Windu Geothermal Power Station, with an installed capacity of 227 MW, continues to expand its operations to meet increasing energy demands.
The Indonesian government is also taking steps to streamline the permitting process for geothermal projects, aiming to attract more foreign direct investment. The introduction of the "one-stop service" policy is designed to simplify the regulatory framework and expedite the approval of geothermal exploration and development permits.
Challenges and Opportunities
Despite the promising developments in both countries, the geothermal sector faces several challenges. In the Philippines, issues related to land use, environmental concerns, and community engagement remain significant hurdles for project developers. The government is working to address these challenges by enhancing regulatory frameworks and promoting stakeholder collaboration.
In Indonesia, the primary challenges include financing and infrastructure development. The high upfront costs associated with geothermal exploration and drilling can deter potential investors. However, the government is actively seeking partnerships with international investors and institutions to mitigate these risks and promote the growth of the geothermal industry.
Global Context and Future Outlook
The increasing focus on renewable energy sources globally, coupled with the urgent need to address climate change, has created a favorable environment for geothermal energy development. As countries strive to meet their carbon reduction commitments, geothermal energy presents a reliable and sustainable solution for baseload power generation.
According to the International Renewable Energy Agency (IRENA), geothermal energy has the potential to provide up to 200 GW of power globally by 2030. The Philippines and Indonesia, with their rich geothermal resources, are well-positioned to capitalize on this opportunity and contribute to the global transition towards clean energy.
In conclusion, the geothermal energy sector in the Philippines and Indonesia is gaining momentum as both nations embark on their energy transition journeys. With ongoing investments, new projects, and supportive government policies, the future looks promising for geothermal energy as a key player in the region's renewable energy landscape.