Coal Reliance and Geothermal Investment Hurdles in Southeast Asia
The latest in this situation
- Procurement rules in the Philippines are stifling investment in geothermal energy projects.
- Indonesia holds most of regional geothermal potential, and the AEBF was held in Manila.
- Southeast Asian nations, including Indonesia and the Philippines, face challenges in energy transition due to heavy coal reliance and resource distribution.
How it started
What happened
In 2023, both Indonesia and the Philippines relied on coal for nearly two-thirds of their electricity, according to Ember. An energy specialist from Association of Southeast Asian Nations Centre for Energy warned that coal-heavy power systems weaken the investment case for geothermal energy in the region. The World Bank identified early-stage uncertainty as a central obstacle to attracting private financing for geothermal projects.
From eco-business.com
Why it matters
The reliance on existing coal-fired generation complicates geothermal expansion in countries like Indonesia, even though two-thirds of the country's geothermal resources are in Sumatra and Java. This structural obstacle raises financing risk for regional energy projects.
From eco-business.com
Who's involved
- IndonesiaIsland country in Southeast Asia facing challenges in energy transition
- PhilippinesArchipelagic country in Southeast Asia facing challenges in energy transition
- Association of Southeast Asian NationsInternational organization of Southeast Asian countries coordinating regional policy
- Asian Development BankRegional development bank involved in identifying financing obstacles
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Asian Development BankSpeculative
Could face increased financing risk for regional energy projects due to early-stage uncertainty and coal competition.
- PertaminaSpeculative
Might face structural obstacles to its energy transition mandate due to heavy coal reliance.
- East JavaSpeculative
Might see the investment case for geothermal development weakened by competition from coal.
- JakartaSpeculative
Might face risks to stable energy supply for its economic hub due to geothermal investment uncertainty.
How it developed
Newest first. Tap a step to see who reported it.- Procurement rules in the Philippines are stifling investment in geothermal energy projects.Sub-event
- Indonesia holds most of regional geothermal potential, and the AEBF was held in Manila.Sub-event
Ember and World Bank report on coal dependence and geothermal obstacles in Indonesia.1 source
Keep exploring
The entities involved
-
Indonesia
island country in Southeast Asia and Oceania
-
Philippines
archipelagic country in Southeast Asia
-
Association of Southeast Asian Nations
international organisation of Southeast Asian countries
Related events
- The Indonesia Energy Corporation, headquartered in Jakarta, leverages Indonesia's abundant coal reserves.
- South Korea offered nuclear technology to Indonesia as both nations seek energy security and development.
- Indonesia holds gas export contracts with multiple regional partners including China, Thailand, Malaysia, Singapore, and Japan.
- Cirebon, a location in Indonesia, functions as a coal complex.