TOKYO (Kyodo) -- The Japanese government will start providing support for private companies to ramp up the development of geothermal power plants, tapping into the country's geothermal resources, the third largest in the world, sources close to the matter said Friday.

The government will aim to commercialize geothermal power plants until 2030 by setting up a public-private sector committee to pinpoint issues, such as how to utilize next-generation geothermal technology and shorten the timeframe in developing the plants, the sources said.

State subsidies for geological surveys will also be increased, as mining operations cost around 1 billion yen ($6.5 million) and have a low success rate.

Until the release of steam is confirmed after drilling, the government-backed Japan Organization for Metals and Energy Security will fully fund the cost to mitigate the companies' risks.

The measures will be reflected in the draft of the government's basic energy plan by the end of this year.

Prime Minister Shigeru Ishiba is keen to promote the development of geothermal power plants as he sees it benefitting local economies, given that many geothermal resources are in rural areas.

The development of such plants remains a tricky issue due to the difficulty in coordinating with operators of hot springs.

A conventional geothermal plant generates electricity by extracting the steam heated by high-temperature magma deep underground through winzes to rotate turbines.

However, the new-generation "closed-loop" technology collects heated water from a greater depth and as such does not conflict with the source of hot springs.

With the current geothermal energy output at around 600,000 kilowatts, the government aims to increase the output to 1.5 million kilowatts by fiscal 2030.