Geothermal handbook: PlanninG and Financing power Generation t e c h n I c a L r e p o r t 2 / 2

in indonesia 
in the 1970s, the national oil company Pertamina took the lead on geothermal 
exploration and was the government arm for leveraging multinational company and donor funds for 
geothermal investments. The strong public sector role in geothermal development was reinforced by 
the creation of Pertamina Geothermal Energy (PGE) as the core state-owned geothermal entity. PGE 
was established in 2006 as a wholly owned subsidiary of Pertamina to take over all aspects of the 
geothermal business from the parent company. Currently, PGE is Indonesia’s leading public sector 
geothermal developer. PGE operates 272 MW of geothermal capacity, and has developed a strategy in 
line with the Indonesian government’s second Fast-Track Program to expand its geothermal production 
capacity by four fold, with an addition of 1,050 MW by 2015. PGE’s functions include constructing 
and developing geothermal investments under the oversight of Pertamina; operating steamfields 
and power plants that Pertamina owns; and managing Joint Operation Contracts (JOCs) through 
which it oversees the revenues from Perusahaan Listrik Negara (PLN) for existing private geothermal 
developers (World Bank 2011).
in kenya
, the Geothermal Development Company (GDC) was established in 2008 to take primary 
responsibility for the exploration and development of geothermal resources. Specifically, GDC 
undertakes integrated development of geothermal resources through initial exploration, drilling, 
resource assessment and promotion of direct utilization of geothermal energy. By undertaking the initial 
project phases, GDC absorbs the exploration and early development risks, opening up opportunities 
for both public and private participation in subsequent phases (CIF 2011b). 
B O x 3 . 1
The Philippines’ PNOC EDC as an Early Example of a Core Geothermal 
Development Company
In 1976, the Philippine government, through the Philippine National Oil Company (PNOC), created the subsidiary 
company, PNOC Energy Development Corporation (PNOC EDC), to take over the exploration and development 
functions of the national power utility National Power Corporation (NPC) in the Tongonan and Palinpinon 
geothermal fields. NPC was still responsible for power generation and would remain the buyer of geothermal 
steam. 
PNOC EDC became the government’s arm in implementing the exploration and development of a number of 
geothermal fields in the country. Many areas were explored and drilled with very satisfactory results which led to 
eventual development and production of over 700 MW of geothermal power, much of it in partnership with private 
sector investors.
In 2007, the company itself was privatized and became independent of PNOC, now operating under the name of 
EDC.
Source | Dolor 2006

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in mexico
, geothermal exploration initially pioneered by the Comisión de Energía Geotérmica (CEG) in 
the 1950s was taken over by the national power utility CFE in late 1960s. Since the 1970s, geothermal 
development has grown from a single 37.5 MW power plant to a total installed capacity of more than 
950 MW—a 25-fold increase, bringing Mexico into third place for geothermal power production, behind 
only the United States and the Philippines (Quijano-León, Luis, and Gutiérrez-Negrín 2003).