NEWS

THE Philippines has spent years talking about its geothermal potential. We discuss drilling, installed capacity, energy security, and the transition to cleaner power.

But another question deserves attention: How much of the heat we produce is lost before it can do its job?

Geothermal energy does not end at the wellhead. Steam travels through pipelines and equipment before reaching the power-generation process. Along that journey, heat loss is an operational concern. Insulation is not simply a construction detail, but a part of making geothermal facilities perform efficiently.

Yet the quality, availability, and standards governing these materials deserve closer examination.

I raised the matter in an inquiry addressed to Energy Undersecretary Alessandro Sales on March 16. It was subsequently forwarded to Energy Undersecretary Rowena Cristina Guevara and referred to the Department of Energy’s (DOE) Geothermal Energy Management Division.

The DOE responded in writing through Chief Science Research Specialist Rainier Halcon. It acknowledged that local manufacturing capacity for perlite-based insulation materials may be limited, while other materials are imported and distributed locally.

The department also clarified that geothermal power plant and steamfield development and operation are undertaken by the private sector. It does not modernize these facilities or prescribe specific policy or standards for this particular insulation material.

The DOE said insulation selection was generally guided by geothermal resource characteristics and the requirements of engineering, procurement and construction (EPC) contractors, with the aim of minimizing heat loss and optimizing operations.

If the government does not prescribe specific standards for this insulation material, how are quality, suitability and performance evaluated? Who ensures that materials selected are appropriate for actual operating conditions?

This is not an accusation against operators or contractors. It is a question about technical accountability and the protection of long-term investments.

Heat does not respect boundaries

Geothermal facilities operate under demanding conditions. Insulation must be suitable for the temperatures, moisture exposure, physical environment and operating requirements of each installation.

A material that performs well in one application may not be appropriate for another. That is why technical specifications, installation quality, inspection and maintenance matter. The issue is not simply whether insulation is present, but whether it performs as intended throughout its service life.

The country’s geothermal ambitions should include attention to these less visible parts of the infrastructure. Energy efficiency cannot be measured only by installed capacity or the number of wells drilled.

The cost of lost heat

Heat loss can have operational consequences. Depending on the facility and the extent of the losses, it may affect thermal efficiency, operating requirements and the economics of generation.

The DOE itself recognized the connection. It said the appropriate use of insulation materials, considering material, conductivity and cost, should minimize heat loss, improve plant operations and lower the levelized cost of electricity, or LCOE.

That is an expected benefit, not a quantified finding about savings already achieved by Philippine geothermal facilities. The DOE provided no figures on actual heat losses, upgrade costs or potential savings.

The financial case must, therefore, be assessed through plant data, engineering studies and lifecycle costs, not assumptions or promotional claims.

The Philippine Geothermal Resource Development Fund supports exploration drilling, associated access roads and well pads, and well testing. The DOE said insulation standards were not directly part of its evaluation criteria. Exploration support and the efficient operation of existing facilities are distinct policy concerns.

From the steamfield to the household

The consequences of energy costs reach households, farms, markets and classrooms.

Consider Tatay William, a farmer from Nueva Ecija. Electricity is part of the cost of keeping an agricultural operation running, from irrigation to the handling and storage of produce. Higher energy costs can put additional pressure on an already demanding livelihood.

At Nepa-Q-Mart in Quezon City, Aling Lucing, a market vendor, relies on electricity for lighting and the operation of her stall. Where refrigeration is needed, power costs also affect the handling of perishable goods. Every increase can eat into her earnings.

Then there is Samantha, a nursing student in Laguna. Electricity supports her studies, from lighting and online research to communication and other academic requirements. Higher household expenses compete with money intended for tuition, transportation, food and school supplies.

Their circumstances differ, but they share one concern: energy costs affect more than the monthly electricity bill. They influence livelihoods, household budgets and opportunities.

Improving geothermal efficiency may help reduce generation costs. But savings at the plant do not automatically translate into lower electricity bills. The effect depends on operating costs, power contracts, regulation, and whether savings are passed on to consumers.

That is why efficiency improvements must be demonstrated, not merely promised.

Who should answer?

The DOE’s response clarifies its position, but important technical questions remain for the industry.

What standards and performance benchmarks do operators and contractors use when selecting insulation materials? How are products tested for suitability under actual operating conditions? How often are insulation systems inspected and maintained? And how are lifecycle costs weighed against the initial purchase price? These are reasonable questions for developers, plant operators, engineering contractors and insulation suppliers.

The DOE has offered to forward the inquiry to the National Geothermal Association of the Philippines (NGAP) and facilitate an introduction once the association confirms. It also identified the Energy Development Corp., Philippine Geothermal Production Co., and Maibarara Geothermal Inc. as potential sources for further discussion.

The industry should have the opportunity to explain its current standards and practices, and whether material availability or insulation deterioration presents significant operational challenges.

The government, industry, and technical community should share an interest in ensuring that geothermal investments are efficient, reliable, and sustainable.

The Philippines does not lack ambition when it comes to energy development. What it needs is equal attention to the details that determine whether investments deliver their promised value.

Generating more energy is only half the job. Making the most of the energy we already produce is the other half.