EDC urges procurement, grid planning reforms to support geothermal development
Energy Development Corporation (EDC) is urging changes to electricity procurement and transmission planning to better recognize geothermal’s round-the-clock supply and support investment in new projects.
EDC President and Chief Operating Officer Jerome C. Cainglet outlined the proposals during an ASEAN Energy Business Forum panel in Manila.
The discussion identified exploration costs, infrastructure requirements, permitting delays, and shortages of specialist workers as barriers to geothermal development.
“Procurement models must value geothermal’s fixed-cost, 24/7 reliability rather than focusing solely on short-term variable generation costs,” Cainglet said.
He described the cost of access roads and transmission connections in remote geothermal areas as an additional burden on developers. Panelists proposed planning transmission corridors in high-potential areas ahead of commercial plant construction.
“Transmission should be built where renewable resources exist,” Cainglet said.
Panelists also called for governments to share early exploration risks. Developers must invest in exploratory wells before confirming whether a geothermal field can sustain commercial generation, creating financing challenges for new projects.
On permitting, the panel urged more coordinated approval processes, including clearer timelines for local permits and processes involving ancestral domains. These were presented as industry recommendations rather than adopted policy changes.
The discussion also addressed the need for specialized drilling and reservoir engineering skills.
PT Daya Mas Bumi Sentosa Director Joeffrey Caranto proposed regional training cooperation, including programs to retrain petroleum and gas engineers for geothermal exploration and development.
Source: Power Philippines