A $170-MILLION geothermal de-risking facility is set to launch next year following an agreement signed by the Department of Energy (DoE) and Land Bank of the Philippines (LANDBANK).
In a statement on Tuesday, the DoE said the Philippine geothermal resource de-risking facility (PGRDF) will address one of the most persistent barriers to geothermal development — the high up-front investment and uncertainty surrounding exploration and initial drilling.
“Geothermal development requires significant investment long before a single kilowatt is delivered to consumers. Through the PGRDF, government is helping the exploration stage so that viable prospects can move faster from resource confirmation to project development,” Energy Secretary Sharon S. Garin said.
Under the agreement, the DoE will act as the executing agency, responsible for policy direction and governance, including the establishment of technical standards, eligibility criteria, and overall program oversight.
LANDBANK will serve as the facility administrator and manager, overseeing sub-loan applications, milestone-based funding releases, collections, and program reporting.
“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,” Ms. Garin said.
The facility was provided by the Asian Development Bank (ADB) through a sovereign loan to the Philippine government to fund or co-share the cost of exploration and drilling.
The DoE said that the financing support enables developers to drill exploration wells with greater confidence and advance new greenfield prospects toward development.
Energy Undersecretary Rowena Cristina L. Guevara, who oversees the renewable energy program, said that the facility is expected to accelerate geothermal development and unlock more viable prospects.
“This is how we translate energy transition goals into firm capacity that supports affordability and long-term energy security,” she said. — Sheldeen Joy Talavera