First Gen Corp. is calling for stronger government policies and financing mechanisms to reduce the risks of geothermal development across Southeast Asia, as its subsidiary Energy Development Corp. continues to operate and expand geothermal facilities in Negros Oriental, recently.
In a press release, The company raised the proposal during a strategic side event at the opening of the ASEAN Energy Business Forum, where industry leaders, policymakers and energy experts discussed barriers to tapping the region’s estimated 34 to 35 gigawatts of geothermal resources.
First Gen said Southeast Asia accounts for nearly 48 percent of the world’s geothermal potential, but development remains concentrated largely in Indonesia and the Philippines.
Indonesia accounts for about 84.9 percent of ASEAN’s installed geothermal capacity, while the Philippines represents around 12.7 percent, the company said.
First Gen, through EDC, is pushing for stronger policy coordination, mechanisms that share the financial risks of exploration, additional transmission investments and electricity market reforms that recognize geothermal power as a stable, round-the-clock renewable energy source.
Unlike solar and wind projects, geothermal development requires significant spending during exploration even before developers can confirm whether underground resources are commercially viable.
First Gen said this high upfront risk remains among the biggest barriers to new geothermal investments.
Transmission constraints are also a challenge, particularly in archipelagic countries such as the Philippines and Indonesia where geothermal resources may be located far from major electricity demand centers.
The discussions highlighted the proposed Philippine Geothermal Resource De-Risking Facility, a $170-million mechanism designed to absorb part of the initial exploration risk and encourage greater private-sector participation.
Participants also pushed for faster and more coordinated permitting processes, clearer geothermal policies and reforms in electricity markets.
Expansion of transmission infrastructure and cross-border power trading through the ASEAN Power Grid were also discussed as possible ways to support geothermal development in the region.
For Negros Island, geothermal power remains a major part of the renewable energy sector.
First Gen-EDC operates the 222.5-megawatt Southern Negros Geothermal Project in Valencia, Negros Oriental.
The company is also undertaking a P3-billion modernization of the Palinpinon 1 geothermal power plant, which will increase its installed capacity from 112.5 MW to 126 MW.
The upgrade will add 13.5 MW to the plant’s capacity.
EDC’s experience in developing geothermal resources in the Philippines was cited during the ASEAN forum as an example of how policy, technical and market obstacles can be addressed.
First Gen is also expanding its geothermal interests outside the country through EDC’s partnership with Indonesia’s Sinar Mas group and PT DSSR Daya Mas Sakti, which is targeting up to 440 MW of geothermal capacity.
The forum featured National Geothermal Association of the Philippines president Jaime Jemuel Austria as keynote speaker.
Panelists included EDC president and chief operating officer Jerome Cainglet, PT Daya Mas Bumi Sentosa director Joeffrey Caranto, 9th ASEAN Energy Outlook lead modeller Yudiandra Yuwono, and Global Renewables Alliance regional lead for Asia-Pacific Rexor Amancio.
First Gen said collaboration between governments and private developers will be crucial in reducing the financial and technical risks that continue to delay geothermal projects.*
[sibwp_form id=1]