Amid setbacks, and doubts: Geothermal energy initiatives gain momentum in the Philippines and Indonesia

It is true that climate change poses a direct threat to everyone. Variables like storms pose a substantial risk, even to the populous capital Manila. A greener future fueled by cleaner energy sources is something that many groups and experts urge for, given the increased vulnerability to natural disasters like earthquakes, floods, and hurricanes.

A September 2021 report from the Energy Development Corporation said that the need for greener energy sources is growing as the effects of climate change become more evident everywhere, including in the Philippines. A potentially revolutionary resource is geothermal energy.

With the bulk, if not all, of the world's geothermal-producing capacity concentrated in Southeast Asia—the Philippines and Indonesia—geothermal energy presents itself as a potentially game-changing opportunity for the country.

What is geothermal energy?

Heat energy from the Earth is captured using geothermal energy, which is a compound word made up of the words "geo" (earth) and "thermal" (heat).

These energy sources include hot water reservoirs at various temperatures and depths below the Earth's surface that are either naturally occurring or produced by human activity. Drilling wells that are a few feet to several miles deep can provide access to subterranean reservoirs where steam and extremely hot water can be extracted. Then, these resources can be exposed to the elements and used for a range of purposes, including direct use, the production of power, and the processes of heating and cooling. The western states of the United States contain the majority of the country's geothermal reservoirs.

The Philippines is one of the world's top generators of geothermal energy because of its location near active volcanoes in the Pacific Ring of Fire. In spite of this, the nation saw a drop in the world geothermal rankings in 2018, coming in just below Indonesia. As a result, the Philippines is thinking of resuming its geothermal development initiatives.

Think GeoEnergy, a portal devoted to geothermal news and research, revealed that the country started a series of fresh exploratory surveys in June 2018, adding to about ten current contracts with power firms involved in geothermal development.

Currently providing around 12 percent of the nation's electricity, the Philippines has seven geothermal fields. By 2040, a long-term strategy aims to nearly triple this capacity.

Leveraging the need, seeing the importance

With some of the greatest reserves in the world, Indonesia and the Philippines are leading the way in the development of geothermal power generation. Businesses are raising money in order to profit from the switch to renewable energy.

Geothermal energy usage in Southeast Asia is highest in the Philippines. Although geothermal reserves rank fifth internationally, they account for roughly 10% of the nation's overall electricity generation.

Through its subsidiary Energy Development Corp., the Lopez Group intends to invest 60 billion Philippine pesos ($1.1 billion) in geothermal power generation over the course of the next three years. Drilling 40 wells is part of the plan, and the locations include the islands of Mindanao and Leyte.

With over 80% of its energy coming from geothermal sources, Energy Development Corp. already has a 1,500 MW renewable energy generation capacity, accounting for over 60% of all geothermal power in the Philippines.

About 60% of the nation's electricity is generated by coal-fired power plants, but the government has outlawed the construction of new ones and wants to increase the percentage of renewable energy to 35%.

Meanwhile, recently in Indonesia, Barito Renewables Energy made its debut on the Indonesian stock exchange. It is an associate of the Indonesian conglomerate Barito Pacific. It is now the second most valuable firm on the exchange, having seen its market valuation soar from 130 trillion rupiah ($8.3 billion) on the first trading day to an astounding 840 trillion rupiah by Tuesday's close.

Mitsubishi Corp., a Japanese trading corporation, is a stakeholder in Barito, which runs three geothermal power facilities in Java through its subsidiary Star Energy Geothermal. Together, these plants produce 890 megawatts.

Gratitude was conveyed by CEO Agus Salim Pangestu, who said, "We extend our heartfelt gratitude to our valued partners and investors for their trust in us and our firm resolve to transition into net-zero goals."

Unlike wind and solar power, geothermal power generation uses hot water and steam taken from beneath to produce electricity. It provides a steady power supply regardless of the weather or time of day.

Indonesia is a geothermal powerhouse, with about 150 active volcanoes located on the Pacific Ring of Fire. With 27,790 MW of geothermal resources, the nation is second only to the United States in the world. Nevertheless, the 2,350 MW of installed producing capacity only accounts for 6% of the nation's power supply and less than a tenth of its reserves.

By 2060, the Indonesian government wants to be carbon dioxide emissions-free. By 2030, geothermal energy will account for 8% of total energy generation, making it the second-largest renewable energy source after hydropower, according to state utility Perusahaan Listrik Negara.

A part of the state-owned oil corporation Pertamina, Pertamina Geothermal Energy went public in February as well. It has a generating capacity of 670 MW spread among six independently managed plants, and when jointly operated facilities are taken into account, that capacity rises to 1,800 MW. By 2027, it intends to build another 600 MW.

Sumitomo Corp. and Inpex are two Japanese businesses that are making investments in Indonesia's geothermal energy market. The Muara Laboh geothermal power project, in which they own an 80% share, aims to double the generation capacity to 220 MW by 2025.

Benefits of this kind of energy

Energy.gov listed some of the major benefits of Geothermal energy.

Renewable Source: Geothermal energy is a sustainable choice since it comes from the natural decay of radioactive elements, which replenishes the heat from the Earth's interior over billions of years.

Baseload Reliability: Regardless of the weather, geothermal power plants can run continuously, 24 hours a day, 7 days a week, producing electricity. This makes them a dependable source of baseload power.

Domestic Availability: American geothermal resources support domestic energy security by providing the benefit of utilizing power for heating, cooling, and electricity production without requiring the importation of fuel.

Compact Infrastructure: The physical footprint of heat pumps and geothermal power plants is minimal. Compared to solar photovoltaic (PV) power plants (3,237 m2), wind (1,335 m2), and coal (3,642 m2), geothermal power plants use less land per gigawatt-hour (404 m2). It is simple to integrate geothermal heat pumps into new construction or to retrofit them into older buildings.

Eco-friendly: Geothermal power plants of today emit no greenhouse gases, and their life cycle emissions are four times lower than those of solar photovoltaic systems and six to twenty times lower than those of natural gas. Furthermore, over the course of their lifetime, geothermal power plants use less water on average than the majority of conventional electricity-generation technologies.

Compact Infrastructure: The physical footprint of heat pumps and geothermal power plants is minimal. Coal (3,642 m2), wind, and geothermal power facilities all use more land per gigawatt-hour (404 m2).

What’s next?

The International Energy Agency projects that Southeast Asia's geothermal power generation will reach 276 million megawatt-hours in 2050, a tenfold increase from 2020. However, certain Southeast Asian projects encounter local resistance, much as the issues with geothermal development in Japan with regard to the effects of hot springs.

For example, protests by locals worried about possible harm to the community caused delays for a project between Indonesian power provider Supreme Energy and Sumitomo Corp. in the Rajabasa district of southeast Sumatra. Concerned about the deterioration of their land caused by geothermal plants, the tribes in Mindanao received royalties from the Philippines' EDC.