Philippines Aims for Clean Energy Leadership with $12.6 Billion Geothermal Investment

Sep 4, 2026

69 min

Sep 4, 2026 07:31

How a $12.6-billion bet could make the Philippines Asia’s ultimate clean energy superpower

## Geothermal Energy Expansion

The Philippines is making a significant push to become a leading clean energy producer in Asia by investing $12.6 billion in geothermal energy. This initiative aims to reduce the country's dependence on imported fuels and capitalize on its geothermal potential.

## Tiwi Geothermal Power Plant

A key player in this effort is the Tiwi Geothermal Power Plant in Albay, which has been operational since 1979. It is one of the oldest geothermal facilities in the country, contributing significantly to the Luzon grid with a capacity of about 350 MW.

## Investment and Development

The Department of Energy (DoE) has outlined a plan to attract substantial investments to develop 2,100 MW of new geothermal capacity. This move is part of a broader strategy to reclaim the Philippines' position as the second-largest geothermal energy producer globally.

## Financial Support and Challenges

To support this expansion, the government has established a ₱10.7-billion fund to mitigate the financial risks associated with geothermal exploration. This fund, backed by the Asian Development Bank, offers cost-sharing support for drilling projects, converting loans into grants if explorations are unsuccessful.

## Future Prospects

While the current fund can support the development of 300 MW, further investment is needed to fully exploit the country's geothermal resources. The government plans to scale up its financial mechanisms to attract the necessary $12.6 billion in global investments.

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