THE Department of Energy (DOE) has identified 12 power firms that would want to avail themselves of the P10-billion geothermal de-risking facility, an official of the Department of Energy (DOE) said.
‘We already know who they are because we need to show the ADB [Asian Development Bank], the Department of Finance [DOF], and the DepDev [Department of Economy, Planning, and Development] the list of those lined up.
We have 12 confirmed candidates, plus five backups in case anyone drops out,’ said DOE Undersecretary Rowena Guevarra.
She declined to identify these 12 firms, but noted that some have foreign partners. ‘So, the next step is for the ADB to issue a tender for the experts who will assist the DOE in evaluating the applications,’ added Guevarra.
The DOE and the Land Bank of the Philippines have established the Philippine Geothermal Resource De-Risking Facility (PGRDF) to reduce financial barriers in early-stage geothermal exploration. Backed by initial support from the ADB, the program employs a risk-sharing mechanism that converts unsuccessful drilling costs into grants while turning successful exploration funds into repayable loans.
The DOE will serve as the executing agency, responsible for policy direction and governance, including the establishment of technical standards, eligibility criteria, and overall program oversight. Landbank will act as the facility administrator and manager, overseeing sub-loan applications, milestone-based funding releases, collections, and program reporting.
‘Geothermal development requires significant investment long before a single kilowatt is delivered to consumers. Through the PGRDF, government is helping de-risk the exploration stage so that viable prospects can move faster from resource confirmation to project development,’ DOE Secretary Sharon Garin said.
The National Geothermal Association of the Philippines (NGAP) is fully supportive of the PGRDF.
NGAP said the PGRDF addresses the high upfront risks of exploration drilling and is expected to revitalize greenfield geothermal development, unlock indigenous baseload renewable energy resources, reduce dependence on imported fuels, and support long-term sustainable development.
‘As the country’s leading organization of geothermal professionals, practitioners, and stakeholders, NGAP remains fully committed to supporting the successful implementation of the PGRDF.
The Association stands ready to provide technical expertise, industry insights, and stakeholder support to help unlock new geothermal investments and maximize the contribution of this indigenous baseload renewable energy resource to the country’s energy security, resilience, and sustainable development,’ NGAP President Jaime Jemuel Austria said.