Southeast Asian Geothermal Potential Undervalued by Current Energy Rules

During the ASEAN Energy Business Forum (AEBF) in Manila, industry leaders highlighted that Southeast Asia holds an estimated 34 gigawatts of geothermal potential, nearly half of the world's total resource base. They warned that current electricity procurement rules favor cheaper short-term power bids over reliable, round-the-clock generation. Industry players called for stricter enforcement of Renewable Portfolio Standards and the removal of the P0.24-per-kilowatt-hour cap on Renewable Energy Certificates.

The current market structures are criticized for overlooking the long-term value of geothermal energy and the volatility of imported coal and natural gas prices. Industry leaders argued that procurement models must value geothermal’s fixed-cost, 24/7 reliability rather than solely focusing on short-term variable generation costs. This lack of recognition hinders the attraction of fresh investments into the region's energy sector.

Southeast Asian nations, including Indonesia and the Philippines, face challenges in energy transition due to heavy coal reliance and resource distribution.