$170M fund de-risks geothermal dev’t

After years of challenges that have slowed local geothermal development, the Department of Energy (DOE) and Land Bank of the Philippines (LANDBANK) have launched a $170-million Philippine Geothermal Resource De-Risking Facility (PGRDF) to help developers move projects forward by sharing exploration risks and costs.

Backed by the Asian Development Bank through a sovereign loan, the PGRDF addresses one of geothermal energy’s biggest barriers such as the high upfront costs and uncertainty during early exploration and drilling. 

“Geothermal development requires significant investment long before a single kilowatt is delivered to consumers. Through the PGRDF, the government is helping de-risk the exploration stage so that viable prospects can move faster from resource confirmation to project development,” Energy Secretary Sharon S. Garin said Tuesday. 

“This partnership with LANDBANK strengthens our ability to expand clean and dependable power supply, support energy security, and advance a just and sustainable energy transition that ultimately benefits Filipino communities.”

The memorandum of agreement was signed on 16 December during the Sustainable Energy Awards by Garin and LANDBANK President and CEO Ma. Lynette V. Ortiz, with Undersecretary Guevara and LANDBANK Senior Vice President Charlotte I. Conde witnessed the ceremony.

Under the agreement, the DOE will set policy direction, technical standards, and eligibility criteria, while LANDBANK will manage funding, oversee milestone-based disbursements, and handle program reporting.

According to Energy Undersecretary Rowena Cristina L. Guevara, the facility will help transform the sector. 

“By de-risking exploration and enabling more projects to move from uncertainty to confirmation, we are widening the pipeline of investible geothermal opportunities, strengthening the resilience of our power system, and reducing our exposure to volatile imported fuel prices,” she said. 

“This is how we translate energy transition goals into firm capacity that supports affordability and long-term energy security for Filipino consumers.”

The government targets to install 52 gigawatts of renewable energy capacity by 2040. 

While solar and wind will dominate growth, a diverse mix including hydro and geothermal is seen as vital to reduce reliance on imported liquefied natural gas.