EXPLAINERGovernment bets on baseload geothermal to cut reliance on imported fuelLast updated: September 04, 2026 | 11:114 MIN READThe Tiwi Geothermal Power Plant is a major 234-MW geothermal facility located in Tiwi, Albay, Philippines. Commissioned in 1979, it is one of the country's first and oldest large-scale geothermal power stations, providing essential clean energy to the Luzon grid. TIWI, Philippines: As one approaches the Tiwi Geothermal Power Plant in Albay, about 465km south-east of Manila, the landscape gives little hint that beneath it lies one of the Philippines’ most important energy stories. The Tiwi power plant sits next to the majestic Mt. Mayon (height 2,462m), one of the Philippines' most active volcanoes popular with tourists.Steam rises from a field shaped by the heat of the earth, a reminder that this was once a bold national experiment.Tiwi’s geothermal potential was studied from the 1960s, developed in the 1970s as the oil shocks exposed the country’s vulnerability to imported fuel. Get it: Fast, verified news for FREE ... download the Gulf News app — simply click here Development accelerated, leading to a complex with 7 units (six main 55-megawatt [MW] turbine-generators across 3 traditional power plants, plus one newer "binary" 17-MW power plant unit) generates about 350 MW for the Luzon grid.Tiwi's new binary plant, started only recently, captures leftover residual heat from existing brine processes without requiring extra well drilling.In 2022, SM Investments Corp., the holding company of the Sy-blings, the family behind retail giant SM, took full control of Philippine Geothermal Production Company Inc. (PGPC), which operates the Tiwi powerplant.Despite the unrest from the nearby Mayon Volcano, the facility's operations remain stable and unaffected. Tiwi is not the only geothermal game in town PGPC also operates Mak-Ban (Makiling-Banahaw) a steam field about 76km southeast of Manila straddling the provinces of Laguna and Quezon.The Philippines is rich in geothermal power because it sits directly along the "Pacific Ring of Fire", an area with heavy volcanic (24 active) and tectonic activity that traps intense heat close to the Earth's surface. Distributed across the country are seven major geothermal fields containing around 55 operational power units/plants, as per ScienceDirect.All told, the Asian nation currently produces 2,057 MW of installed geothermal capacity, about 6.4% of its total electricity generation in 2025.The Philippines currently hosts the largest single geothermal asset in Asia — the Unified Leyte Geothermal Power Plant.But in recent years, the country has slid down global rankings: It currently sits in third place globally, trailing behind the United States and Indonesia.Now, the country wants to regain its lead. And it's pouring billions into this drive to unlock what's known as the 'perfect' baseload power. Unlike intermittent renewable sources like solar or wind, geothermal energy provides continuous, 24/7 baseload power.$12.6 billion neededThe Philippines' Department of Energy (DoE) has stated that the Philippines needs to attract $12.6 billion in fresh investments to explore and build 2,100 megawatts (MW) of untapped capacity as part of an aggressive campaign to reclaim its title as the world's second-largest geothermal energy producer.Speaking at the 7th Philippine International Geothermal Conference in Lipa City, Batangas, DOE Secretary Sharon Garin clarified the massive scale of funding needed to secure the country’s clean energy grid. Unlocking 'perfect' baseload power