Market Size of Philippines Geothermal Energy Industry
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | > 1.50 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Geothermal Energy in the Philippines Market Analysis
The Philippine geothermal energy Market is projected to register a CAGR of around 1.5 % during the forecast period.
The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.
- Over the medium term, factors such as rising energy demand and the demand for cleaner energy are expected to drive the growth of the Philippine geothermal energy market during the forecast period.
- On the other hand, low domestic investment due to the high installation cost of the geothermal plants is expected to restrain the Philippine geothermal energy market in the forecast period.
- Nevertheless, due to its favorable geological characteristics, the deep geothermal system sector is anticipated to experience significant expansion in the Philippine geothermal energy market. By 2040, the Philippine government hopes to stop using coal and shift its attention to renewable and natural gas energy sources. This can create several opportunities for the Philippines geothermal energy market in the future.
- Favorable government policies and incentives on renewable energy are likely to drive the Philippine geothermal energy market during the forecast period.
Geothermal Energy in the Philippines Industry Segmentation
Geothermal energy is a method of energy conversion that utilizes heat energy from within the Earth to generate electricity and produce heat for many purposes, such as space heating, cooking, and bathing. Geothermal energy can be used to generate heat and electricity. The market is segmented by technology type. By technology type, the market is segmented into the ground source heat pump, direct use geothermal, and deep geothermal system. The report also covers the market size and forecasts for the Philippine geothermal energy market. For each segment, the market sizing and forecasts have been done based on installed capacity (in MW).
Philippines Geothermal Energy Market Size Summary
The Philippine geothermal energy market is poised for growth, driven by increasing energy demand and a shift towards cleaner energy sources. The country's unique geological position along the Pacific Ring of Fire makes it an ideal location for geothermal energy exploitation. Despite challenges such as high installation costs and low domestic investment, the market is expected to benefit from favorable government policies and incentives aimed at promoting renewable energy. The government's commitment to phasing out coal by 2040 and focusing on renewable and natural gas energy sources presents significant opportunities for the geothermal sector. The deep geothermal system sector, in particular, is anticipated to experience substantial expansion due to the country's favorable geological characteristics and the stability of geothermal energy, which is unaffected by surface weather conditions.
The Philippine government actively supports renewable energy projects through various incentives and subsidies, encouraging domestic investment in the sector. Programs like the Green Energy Options program are designed to promote the use of renewable energy sources, including geothermal energy, by allowing consumers to choose their energy source. The Department of Energy oversees the implementation of renewable energy legislation and regulations, further supporting the sector's growth. Incentives such as tax holidays, duty-free importation of renewable energy equipment, and tax credits on domestic capital equipment are expected to drive further investment in geothermal energy. The market is consolidated, with key players including Philippine Geothermal Production Company Inc., Energy Development Corporation, and Aboitiz Power Corporation, among others, actively contributing to the sector's development.
Philippines Geothermal Energy Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Philippines Geothermal Energy Installation Capacity and Forecast in Megawatts (MW), till 2025
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1.3 Recent Trends and Developments
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1.4 Government Policies and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.2 Restraints
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1.6 Supply Chain Analysis
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1.7 PESTLE Analysis
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Philippines Geothermal Energy Market Size FAQs
What is the current Philippines Geothermal Energy Market size?
The Philippines Geothermal Energy Market is projected to register a CAGR of greater than 1.5% during the forecast period (2024-2029)
Who are the key players in Philippines Geothermal Energy Market?
Philippine Geothermal Production Company, Inc., Energy Development Corporation , National Power Corporation , Aboitiz Power Corporation and Aragorn Power and Energy Corporation (APC Group Inc.) are the major companies operating in the Philippines Geothermal Energy Market.
