Geothermal remains one of the most promising potential energy source in the Philippines as it ranks second to the United States of America in installed geothermal electric capacity. Its favorable tectonic setting being situated in the Pacific "ring of fire" has endowed her with a large number of geothermal areas widely distributed throughout the country.

The Cordillera Administrative Region (CAR) in Northern Luzon is considered as one of the potential areas for future geothermal development. It has vast resources of indigenous energy that includes geothermal energy, which can be tapped for power and/or non-power applications. Based on the Philippine Energy Plan for 2004-2013, the Region possesses the highest estimated geothermal resource potential in the island of Luzon. Identified geothermal areas with potential for development in CAR include Daklan and Buguias in Benguet, Batong Buhay in Kalinga, Tinoc in Ifugao, and Mainit in Mountain Province. These areas belong to the Luzon Central Cordillera Volcanic Belt consisting of non-active volcanoes hosting several geothermal resources. Except for Daklan, exploration of these areas has not been completed in detail. Further exploration of these prospect areas is recommended to define precisely their resource potential.

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