First Gen Corp. said it would need around USD 20 billion to expand its power portfolio to 13,000 megawatts (MW) within the next five years.

The Lopez-led company currently operates about 3,600 MW from geothermal, wind, hydropower, solar, and natural gas plants. President and COO Francis Giles Puno admitted the target will be “challenging” given the time required to build new facilities, as reported by Inquirer.

To reach its goal, the company is banking heavily on its geothermal business, both in the Philippines and abroad. In Indonesia, First Gen expects 500 to 600 MW of additional geothermal capacity. In the Philippines, Puno said there are “a lot of smaller but still important geothermal expansion” projects.

The biggest project is in Davao de Oro, where drilling will begin this year, with a potential of 70 to 100 MW. Another geothermal prospect in Mindanao is also being explored.

“That’s part of how we will achieve the 13 gigawatts,” Puno said, adding that geothermal provides reliable baseload capacity, which allows plants to operate continuously.

The push for geothermal, however, comes with significant costs. Drilling alone requires USD 10 million to USD 12 million per well, with no guarantee of commercially viable resources. To help offset the risks, the Department of Energy (DOE) plans to roll out a geothermal resource derisking facility by the second half of 2026, with an initial USD250 million fund.

Do you think government support will be enough to help energy firms like First Gen expand geothermal capacity in the country?

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