The National Geothermal Association of the Philippines (NGAP) is urging the government to offer enhanced investment incentives to scale up local capacity and tap the country's unexploited renewable energy resources.
NGAP President Jaime Jemuel Austria noted during a roundtable discussion that initial assessment studies for unexplored geothermal resources cost developers roughly 10 million alone, while piloting non-conventional technologies requires hundreds of millions in investment.
This has prompted the organization to collaborate with the Department of Energy (DOE) to secure greater support, particularly through expanded government incentives.
According to Austria, tax relief is critical to offsetting the higher development costs of frontier and mid-tier geothermal sites.
"In the form of a tax incentive, for example, extending the income tax holiday those kinds of details. Right now, we have a seven-year income tax holiday; if we can extend that, for example," he told reporters last week.
Beyond tax relief, Austria cited the need for financial support through the Renewable Energy Trust Fund (RETF), which finances sustainable energy research and development.
Under DOE Department Circular No. DC2026-08-0018, the RETF can distribute grants, loans, equity investments, and insurance to expand renewable energy knowledge, conduct studies, and finance RE Act-aligned activities.
"If we have a component of a project that needs a study, for example, we can tap that facility specifically for that kind of work. We are collaborating with the DOE and the Department of Science and Technology (DOST) to identify eligible projects," Austria added.
NGAP noted that proper incentives could help the government unlock the country's remaining 2,000 megawatts (MW) of untapped geothermal capacity.
Austria explained that while early development focused on prime, high-potential locations, developing the remaining sites will be more complex and costly. These frontier areas require specialized technologies such as downhole pumps for lower-temperature resources that fall outside conventional models, justifying targeted government aid.
Additionally, Austria disclosed that NGAP is working with the DOE to resolve pricing issues and boost industry participation in the upcoming geothermal Green Energy Auction (GEA).
"In the last round, GEA 3, the government offered 100 MW of capacity, but only 30 MW was taken up by the industry due to several reasons," he said. "We reconvened the technical working group to focus on areas for improvement to increase industry uptake in preparation for the next round, GEA 9."
To drive participation, NGAP conducted a line-by-line review of the industry's price determination mechanism to address the cost gaps that stalled earlier bidding.
Austria pointed out that regulatory agencies previously applied flatland, urban construction rates to infrastructure like roads and site clearing, even though most geothermal reserves are situated in rugged, mountainous terrain.
To reflect the true cost of power generation, NGAP is advocating for location-specific price benchmarks rather than a uniform cap, while aligning project readiness timelines with the DOE and the Energy Regulatory Commission.
NGAP President Jaime Jemuel Austria noted during a roundtable discussion that initial assessment studies for unexplored geothermal resources cost developers roughly 10 million alone, while piloting non-conventional technologies requires hundreds of millions in investment.
This has prompted the organization to collaborate with the Department of Energy (DOE) to secure greater support, particularly through expanded government incentives.
According to Austria, tax relief is critical to offsetting the higher development costs of frontier and mid-tier geothermal sites.
"In the form of a tax incentive, for example, extending the income tax holiday those kinds of details. Right now, we have a seven-year income tax holiday; if we can extend that, for example," he told reporters last week.
Beyond tax relief, Austria cited the need for financial support through the Renewable Energy Trust Fund (RETF), which finances sustainable energy research and development.
Under DOE Department Circular No. DC2026-08-0018, the RETF can distribute grants, loans, equity investments, and insurance to expand renewable energy knowledge, conduct studies, and finance RE Act-aligned activities.
"If we have a component of a project that needs a study, for example, we can tap that facility specifically for that kind of work. We are collaborating with the DOE and the Department of Science and Technology (DOST) to identify eligible projects," Austria added.
NGAP noted that proper incentives could help the government unlock the country's remaining 2,000 megawatts (MW) of untapped geothermal capacity.
Austria explained that while early development focused on prime, high-potential locations, developing the remaining sites will be more complex and costly. These frontier areas require specialized technologies such as downhole pumps for lower-temperature resources that fall outside conventional models, justifying targeted government aid.
Additionally, Austria disclosed that NGAP is working with the DOE to resolve pricing issues and boost industry participation in the upcoming geothermal Green Energy Auction (GEA).
"In the last round, GEA 3, the government offered 100 MW of capacity, but only 30 MW was taken up by the industry due to several reasons," he said. "We reconvened the technical working group to focus on areas for improvement to increase industry uptake in preparation for the next round, GEA 9."
To drive participation, NGAP conducted a line-by-line review of the industry's price determination mechanism to address the cost gaps that stalled earlier bidding.
Austria pointed out that regulatory agencies previously applied flatland, urban construction rates to infrastructure like roads and site clearing, even though most geothermal reserves are situated in rugged, mountainous terrain.
To reflect the true cost of power generation, NGAP is advocating for location-specific price benchmarks rather than a uniform cap, while aligning project readiness timelines with the DOE and the Energy Regulatory Commission.
