As the war in the Middle East sends shock waves through global oil markets, countries heavily dependent on imported fossil fuels are once again confronted with a familiar vulnerability: energy insecurity. For the Philippines, a nation that imports the majority of its fuel requirements, this moment is not just a crisis, it is a strategic inflection point.

Amid rising oil prices and unstable supply chains, the quiet but steady expansion of geothermal energy in the Bicol Region offers a compelling alternative: a domestic, renewable, and resilient energy backbone that could insulate the country from global volatility.

The Strategic Value of Geothermal Energy

Unlike solar and wind, geothermal energy provides baseload power, a constant and reliable energy supply that does not depend on weather conditions. This makes it uniquely valuable in maintaining grid stability, particularly for Luzon, the country’s economic and population center.

The Bacon-Manito (BacMan) Geothermal Complex, straddling Albay and Sorsogon, exemplifies this role. Its recent expansion, including the 22-MW Tanawon Plant inaugurated in August 2025 and the 28.9-MW Palayan Bayan binary facility, signals a deliberate push to maximize existing geothermal reservoirs. These are not mere add-ons; they represent a shift toward efficiency-driven energy extraction, especially with the adoption of binary technology that captures lower-temperature resources previously considered unusable.

Similarly, the Tiwi Geothermal Power Plant in Albay, one of the oldest in the country, continues to demonstrate longevity and reliability. Though operating with fewer units than in  its peak years, it remains a cornerstone of renewable energy generation in Luzon.

A Model of Sustainable Energy Development

What sets Bicol’s geothermal developments apart is not just their capacity, but their sustainability design. The Palayan Bayan binary plant employs a zero-discharge system, reinjecting geothermal fluids back into the earth. This minimizes environmental degradation while maintaining reservoir pressure, effectively extending the lifespan of the resource.

This closed-loop approach addresses one of the traditional criticisms of geothermal energy, resource depletion and environmental impact, by turning waste into continuity. It reflects a maturing energy strategy: not just extracting power but managing it responsibly over decades.

Economic and Energy Security Implications

In the context of a global energy crunch, geothermal energy offers three critical advantages:

Price Stability: Unlike imported oil and gas, geothermal energy is not subject to international price shocks. Once infrastructure is in place, operational costs remain relatively predictable.

Energy Independence: Expanding domestic energy sources reduces reliance on foreign suppliers, insulating the Philippines from geopolitical disruptions.

Long-Term Cost Efficiency: While capital-intensive upfront, geothermal plants provide decades of stable output, making them economically viable over the long term.

For a country that frequently grapples with high electricity costs, these advantages are not theoretical, they are transformative.

The Bigger Picture: A National Energy Pivot

The developments in Bicol should not be viewed in isolation, but as part of a broader national energy transition. The Philippines is already one of the world’s top geothermal producers, yet much of its potential remains untapped.

The current global crisis underscores a simple truth: energy policy is national security policy.

By accelerating geothermal exploration and modernization, not just in Bicol but in other geothermal-rich regions like Leyte and Mindanao, the Philippines can build a diversified  energy portfolio that is both sustainable and sovereign.

From Vulnerability to Resilience

The war-driven energy crisis serves as a stark reminder of the fragility of fossil fuel  dependence. But beneath the volcanic landscapes of Bicol lies a different future, one  powered not by imported oil, but by indigenous, renewable heat from the earth itself.

The expansion of geothermal facilities in BacMan and Tiwi is more than an infrastructure  upgrade; it is a strategic investment in resilience. If sustained and scaled, it could redefine  the Philippines’ energy trajectory, from one of vulnerability to one of enduring strength.

Bridging Bicol’s Geothermal Promise and Albay’s Power Reality

The story of geothermal power in Bicol is, by any measure, a story of promise fulfilled at the  national level, of how the region’s volcanic landscape was transformed into a steady,  renewable backbone for the country’s energy supply. It is a narrative of innovation,  resilience, and contribution, one that rightly highlights Bicol’s role in powering the  Philippines beyond its own borders. Yet, as with many large systems, success in production  does not always translate into satisfaction in experience. For while Bicol helps keep the  lights on across the national grid, a different reality unfolds on the ground in places like  Albay, where reliability remains uneven and costs feel burdensome. It is in this gap between  what the region provides and what its people receive that a deeper, more complex story  begins to emerge.

A Province Powered by the Earth, Yet Left in the Dark

And yet, in Albay, the lived experience often tells a different story. Outages persist.  Electricity feels costly. The promise of abundance seems strangely distant from everyday  life.

For decades, Bicol has stood as a cornerstone of the Philippines’ renewable energy  ambitions. It is a narrative of foresight and ingenuity: harnessing the earth’s heat, converting  volcanic force into stable, continuous energy. The region does not lack power. It produces it,  cleanly, reliably, and in significant quantities.

The disconnect begins with how electricity is structured in the Philippines. Power generated  in Bicol does not remain in Bicol. Instead, it is fed into the Luzon grid, where it becomes part  of a shared pool distributed across regions.

This means that Albay does not enjoy automatic priority or preferential pricing simply  because it hosts geothermal plants. Local distributors must still procure electricity through  contracts and market mechanisms shaped at the national level. What the province  produces, it does not necessarily control.

Why Geothermal Wealth Does Not Mean Cheaper Electricity

Geothermal energy is often praised for its long-term stability. Once operational, plants can  provide consistent baseload power with relatively predictable costs. But that stability exists  at the level of generation, not at the level of the consumer.

By the time electricity reaches households in Albay, its price reflects far more than the cost  of geothermal production. It includes transmission charges, distribution expenses, system  losses, and contractual obligations. The economic advantage of geothermal energy  becomes diluted along the way, leaving residents to shoulder costs that feel disconnected  from the resource beneath their feet.

The Fragile Path: Transmission Under Pressure

Even when power is available, delivering it reliably is another matter. Transmission  infrastructure in the Bicol region remains vulnerable, particularly in the face of frequent  typhoons.

Lines are damaged, repairs take time, and upgrades struggle to keep pace with both  environmental stress and growing demand. The journey of electricity, from plant to province,  is often interrupted, not by scarcity of supply, but by the fragility of the systems that carry it.

Where the System Breaks: Distribution and Local Inefficiencies

Closer to the consumer, the weaknesses become more pronounced. Albay’s distribution  system has long been burdened by financial instability, aging infrastructure, and operational inefficiencies.

Transitions in management have not immediately resolved these structural problems.  Technical losses, system overloads, and maintenance gaps continue to affect service  quality. These inefficiencies do not disappear; they are absorbed into the cost of electricity  and reflected in the reliability of supply.

The Hidden Costs Behind Every Electric Bill

For many residents, the true cost of electricity extends beyond the monthly statement.  Frequent outages force households and businesses to adapt, often by relying on generators  or absorbing productivity losses.

These indirect costs compound the burden, reinforcing the perception that electricity in  Albay is not only unreliable, but also more expensive than it should be.

Geography as Both Gift and Burden

Albay’s natural landscape is both the source of its energy wealth and a contributor to its  challenges. The same volcanic environment that enables geothermal power also exists  within a region frequently struck by severe weather.

Typhoons, flooding, and environmental stress place constant pressure on infrastructure.  Maintenance becomes more difficult, disruptions more frequent, and recovery more costly.  Geography, in this sense, is both an advantage and an obstacle.

A Structural Mismatch: Energy-Rich, Power-Poor

Taken together, these factors reveal a deeper imbalance. At the level of generation, Albay,  and Bicol as a whole, is energy-rich. But at the level of delivery and experience, it remains  constrained.

The systems that produce electricity, transmit it, and distribute it are not fully aligned. The  result is a province that contributes significantly to the national grid yet struggles to meet its  own expectations for reliable and affordable power.

Why the Problem Persists

The persistence of this dilemma lies in its complexity. There is no single point of failure, and  therefore no single solution.

Addressing the issue requires coordinated reform across multiple layers: modernizing  transmission infrastructure, strengthening distribution systems, improving regulatory  frameworks, and ensuring that contracts and pricing mechanisms better reflect local  realities. Each of these is difficult on its own; together, they form a challenge that takes time  and sustained political will to resolve.

The Unfinished Promise of Geothermal Power in Bicol

Seen in full, the story of Albay is not a contradiction of geothermal success, but a reminder  of its limits. The region’s contribution to renewable energy remains significant and  commendable. But the benefits of that contribution are unevenly felt.

Until the systems that connect production to everyday use are strengthened and aligned,  the promise of geothermal power in Bicol will remain incomplete: impressive in scale, yet  insufficient in impact for the communities who live closest to its source.

The header photo shows the Tiwi Geothermal Power Plant in Albay, the country’s first commercial, utility-scale geothermal facility, operating since 1979. Operated by AP Renewables, Inc. (APRI), a subsidiary of AboitizPower, it currently features a 234-MW capacity, supplying renewable baseload power to the Luzon Grid from four operating units. The plant utilizes steam from the Tiwi geothermal field on the slopes of nearby Mt. Malinao, a potentially active stratovolcano.

About the author

RAUL F. BORJAL, known as “Rolly” to his family and friends, was born in Naga City, Camarines Sur, and now resides in Parañaque City, Metro Manila. An alumnus of both Ateneo de Naga University and Ateneo de Manila University, he held senior executive roles in several domestic and multinational corporations, culminating in his retirement as Vice President and Corporate Secretary of a Filipino-owned group of companies.

He is married to the former Wenifreda D. Parma, a cum laude graduate of Ateneo de Naga University, and together they have four children. Rolly is also a co-founder and a member of the editorial board of Dateline Ibalon.