Power sector companies looking to explore geothermal energy in the Philippines will be able to access a $170-million de-risking facility starting in the first quarter of 2026, the Department of Energy (DOE) said Tuesday.
The facility follows the signing of a memorandum of agreement between Energy Secretary Sharon Garin and Land Bank of the Philippines President and CEO Ma. Lynette Ortiz during the Sustainable Energy Awards 2025 in Makati City.
The agreement operationalizes the Philippine Geothermal Resource De-Risking Facility (PGRDF), with funding sourced from the Asian Development Bank (ADB) through a sovereign loan to the national government.
“This partnership represents a significant step toward accelerating geothermal development and reducing investment risks in the sector,” Garin said.
Speaking to reporters, Garin said the government aims to restore the Philippines’ standing as the world’s second-largest geothermal power producer, after slipping to third or fourth place in recent years due to high exploration costs and policy-related challenges that dampened investor interest.
Under the facility, funds accessed by power developers will be treated as repayable obligations if exploration yields commercially viable resources. If exploration is unsuccessful, the funding will be converted into a grant, effectively reducing investor risk, Garin said.
“We’re hoping that with this facility, there will be more geothermal projects,” she added, noting that successful developments would help secure additional renewable energy capacity for the country.
PNA PHOTO