Philippines Geothermal Energy Market Size, Share and Outlook - Growth Analysis Report and Forecast Trends (2026-2035)

The Philippines geothermal energy market is projected to grow at a CAGR of 2.10% between 2026 and 2035, due to increasing government efforts to expand its share in renewable energy production.

Latest News on the Philippines Geothermal Energy Market (2026)

April 2026: Mindanao Projects Could Add 280 MW of Geothermal Capacity

The Philippine Department of Energy confirmed eight proposed geothermal projects in Mindanao that could collectively add 280 MW of baseload capacity, strengthening energy security amid global fuel-price volatility linked to Middle East disruptions. According to the Manila Times, the projects support the Philippine Energy Plan's 35 percent renewables target by 2030, with geothermal seen as a hedge against imported coal and LNG exposure.

March 2026: Indigenous Tribes Seek Larger Role in Geothermal Round Two

Indigenous tribes in the Philippines pressed for stronger involvement in the second round of geothermal service contract bidding in March 2026, citing rights under the Indigenous Peoples Rights Act of 1997. As reported by Nikkei Asia, alongside the launch of a USD 170 million ADB-funded Philippine Geothermal Resource Development Facility, the debate over benefit-sharing is shaping permitting timelines for new Luzon and Visayas fields.

Q1 2026 Market Updates

Geopolitical Impact of Iran, US, and Israel War on the Philippines Geothermal Energy Market

United States: The Philippines Geothermal Energy Market, a key segment of the global economy, is experiencing a complex operating environment in Q1 2026 as a direct consequence of the US-Israel-Iran war. Brent crude has surged past USD 120 per barrel as the Strait of Hormuz, through which 20% of global oil and 19% of LNG transits, has been effectively closed since March 4, 2026. The Ras Tanura refinery strike, which disabled 550,000 bpd of processing capacity, and Qatar's LNG force majeure are creating structural supply disruptions. The conflict is simultaneously the most powerful strategic demand catalyst for renewable energy in decades, as every petroleum-free megawatt directly reduces military vulnerability and fuel import dependence. The conflict is simultaneously driving the strongest-ever strategic demand signal for energy diversification and resilience investment.

Iran: Iran's domestic Philippines Geothermal Energy sector has been effectively suspended by the conflict. US-Israeli strikes on industrial and civilian infrastructure across Tehran, Mashhad, Isfahan, and other major cities have disrupted all commercial activity. Power outages from attacks on electricity generation facilities have halted manufacturing operations, and the collapse of the commercial banking and logistics system has eliminated any residual trade flows. The broader humanitarian crisis, with over 1,900 casualties and 4,000+ civilian buildings damaged, has redirected the entire Iranian economy toward survival rather than production or consumption.

Israel: Israel's Philippines Geothermal Energy sector is experiencing near-term disruption from wartime conditions. Consumer spending on non-essential categories has declined as millions of Israelis regularly shelter from missile and drone alerts. Supply chain logistics are disrupted by regional airspace closures, elevated war-risk insurance premiums, and the suspension of major carrier services through the region. International business partnerships with Israeli companies have been temporarily suspended. Post-conflict reconstruction and recovery demand is expected to provide meaningful demand acceleration across affected market segments once operational conditions normalise.

Market Size and Forecast

• CAGR from 2026 to 2035: 2.10%