The Energy Regulatory Commission (ERC) trained the spotlight on transparent geothermal pricing during the 7th Philippine International Geothermal Conference (PIGC7).
ERC Market Operations Service-Renewable Energy Division (MOS-RED) chief Jayson G. Corpuz said geothermal energy is a critical, clean, and stable round-the-clock source of baseload power that will strengthen Philippine energy security.
In his presentation, the ERC official noted the country’s substantial untapped geothermal potential and the national targets to increase geothermal capacity to approximately 2,980 megawatts (MW) by 2040, alongside the broader goal of raising renewable energy’s (RE) share in the power generation mix to 35 percent by 2030 and 50 percent by 2040.
Corpuz presented the ERC’s ‘Price Determination Methodology for Geothermal under the Green Energy Auction Program of the Philippines,’ highlighting the regulatory foundations of the Green Energy Auction Program (GEAP) and the commission’s role in evaluating geothermal financial bid documents.
He emphasized the ERC’s continuing role in ensuring that geothermal pricing remains transparent, evidence-based, and responsive to evolving technology costs and financing conditions, while protecting electricity consumers and supporting the investments needed to expand the country’s renewable energy capacity.
In the previous third round of the Green Energy Auction (GEA-3) for geothermal, only 30 MW out of the offered 100-MW capacity was taken by the industry.
Geothermal developers belonging to the National Geothermal Association of the Philippines (NGAP) stressed the need to offset higher development costs through specific government interventions, such as extending the current 7-year income tax holiday and utilizing the Renewable Energy Trust Fund for technology research and development (RandD).
A technical working group (TWG) under the NGAP has been reconvened to improve industry uptake ahead of another geothermal auction. NGAP President Jaime Jemuel Austria Jr. said a new proposal on geothermal pricing will be submitted to the government soon.
‘We explained to the ERC how these costs should be factored in to be able to come up with a good or a more representative price range of what geothermal really costs,’ he said.
The ERC, for its part, reaffirmed its commitment to sound and responsive regulation that supports sustainable geothermal development, strengthens energy security, encourages investments, and ultimately advances reliable and reasonably priced electricity for Filipino consumers.