The Department of Energy (DoE) is seeking potential partners to administer and/or generate funds to mitigate investment risks for local geothermal power developers.

Assistant Energy Secretary Mylene Capongcol has outlined a plan to reduce risks associated with investments in domestic geothermal development projects.

The plan aims to primarily address the drilling exploration phase which represents a significant financial investment within the development process.

Under discussion

“Regarding our de-risking policy, the study is almost complete so we’re just looking for a financing partner or an agency that will co-manage the fund or the facility. We are under discussion with various financial agencies that can be partnered,” Capongcol said.

“Part of that is the de-risking tool that we will be using and if we can already find an ideal partner for the de-risking tool then we will launch it,” she added.

Capongcol noted that the geothermal de-risking tool aims to offer a form of assurance, allowing projects to continue their geothermal exploration efforts confidently.

De-risking roadmap

To recall, the DoE tapped the Asian Development Bank in 2022 to develop a geothermal de-risking roadmap for the Philippines.

The program aims to identify, assess, and suggest pre-development stage de-risking strategies for geothermal energy and assist in evaluating and prioritizing policies and regulations to promote the development of geothermal power resources in the country.

The DoE emphasized the significance of a de-risking tool for geothermal power projects, considering the substantial financial investment required and the extended gestation period of approximately four to six years.

Only a limited number

Furthermore, the DoE noted that only a limited number of drilled geothermal wells, around 59 percent, possess adequate resources for power generation.