Southeast Asia aims to harness geothermal energy amid challenges
- Geothermal energy is a clean and reliable energy source positioned to help the Philippines and Indonesia reduce fossil fuel dependency.
- Both countries have set ambitious targets to enhance their geothermal capacity by 2030, but face financial risks and community opposition.
- Successful geothermal energy development will require addressing community concerns and securing necessary financing.
Indonesia and the Philippines, both located along the seismically active Ring of Fire, have significant geothermal energy potential, ranking as the second and third largest users globally after the United States. Currently, the Philippines has developed about 8% of its geothermal capacity, which constitutes 14.6% of its total energy usage, while Indonesia is planning to raise its geothermal share by at least 8% by 2030. Despite this potential, the exploratory phase is costly and risky, making it difficult to secure financing. The Philippine government has introduced green energy auction schemes and a smart green grid plan aimed at attracting investment. Protests and concerns from Indigenous communities over land use can further complicate these developments, spotlighting the need for companies to engage positively with local populations to ensure project success. As both countries seek to reduce reliance on fossil fuels, overcoming these financial and social hurdles will be critical to realizing their geothermal energy goals.