Southeast Asia Has Identified 34 Gigawatts of Geothermal Power
Policy and risk-mitigation measures are needed to unlock potential that could shift the region’s energy future.
Updated on Oct. 5, 2026 in Energy
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Energy Development Corp. has identified a 34-gigawatt geothermal power potential across Southeast Asia. This assessment highlights a path to expand beyond the existing capacity of major regional producers like the Philippines and Indonesia.
Why it matters
Unlocking this capacity requires large upfront capital and a strategy to navigate the financial risks associated with early exploration drilling. Without support, the high cost of entry keeps these massive subsurface resources untapped.
Exploratory geothermal drilling carries a 15% failure rate based on data collected since 2000. While the region holds 48% of global geothermal potential, individual projects require significant capital before a resource is confirmed as commercially viable.
The players
Energy Development Corp.
A developer with 1.48 gigawatts of installed capacity that accounts for 20% of the Philippines' total renewable energy.
The details
Geothermal development utilizes heat from the Earth's subsurface to generate electricity. Because exploration involves drilling into complex underground geological structures to find steam or hot water, it carries a high risk of unsuccessful wells. Companies can manage these financial risks using sovereign derisking instruments—financial tools that protect investors against early-stage project failure. Regional cooperation allows nations to share technical expertise in drilling and subsurface mapping across borders to lower development barriers.
Timeline
1976: Company began developing geothermal facilities.
2000: Start of data collection on drilling failure rates.
- 2025-12-31
Philippines geothermal power mix capacity measured.
- 2026-10-05
Remarks made at the ASEAN Energy Business Forum.
The Tech Race
The push to monetize 34 gigawatts of geothermal capacity follows the precedent set by the $170 million Philippine Geothermal Derisking Facility. This effort benchmarks the region's output against established leaders like Indonesia to determine the viability of scaling subsurface energy extraction.
Realizing this capacity would significantly increase the availability of baseload renewable energy in regions currently reliant on geothermal for only 6.4% of their power mix. Residents and industries in countries like the Philippines may see more stable energy costs if exploration succeeds.
The takeaway
The move to quantify and derisk geothermal exploration marks a pivot toward institutionalizing massive subsurface energy production. Watch for further government adoption of risk-mitigation policies that follow the $170 million Philippine Geothermal Derisking Facility model.
Further reading
Read more about regional developments in the Energy section.
Live Poll
Is it a good time for your country to prioritize risky upfront investments in geothermal energy?
