The Philippines is located in the Pacific Rim of Fire, a volcanic region which extends in a crescent from Sumatra in Indonesia at the western end, across the 3,000 mile archipelago of Indonesia, through the Philippines archipelago to Japan in the east. It has a considerable number of high quality geothermal resources. These are all island arc volcanic systems as typically found in the Circum-Pacific region, and show close similarities with geothermal systems in Indonesia and Japan. The widely distributed nature of the geothermal resources in the Philippines has long been an impediment to geothermal power development.

With over 20 years of experience in geothermal development and power generation, the geothermal industry in the Philippines is now in a mature state and currently the Philippines Department of Energy is supervising the operations of nine geothermal service contract areas. In the early 1990s, there was a rapid upswing in geothermal power development and 1,000 MW of geothermal capacity was added between 1993 and 1997. This was largely due to BOT legislation in the Philippines, which allowed international power utilities to enter the market and to fund and construct geothermal power plants. This enabled an increase in the much needed generating capacity without increasing national debt.

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