$170M geothermal de-risking facility in the Philippines officially launched
Ortigas Business District, Metro Manila, Philippines (source: Ralff Nestor Nacor, CC BY-SA 4.0 
Carlo Cariaga
16 Dec 2025
The Philippines has officially launched a $170 million geothermal de-risking facility to support early-stage geothermal exploration and drilling.
A USD 170 million geothermal de-risking facility has been officially launched in the Philippines which seeks to accelerate early-stage geothermal exploration. Through the Philippine Geothermal Resource De-Risking Facility (PGRDF), companies can tap into the fund for the government to shoulder at least 50% of the cost for geothermal exploration or drilling through a conditionally repayable grant.
The facility will be available starting the first quarter of 2026. Funding from the facility will be considered an obligation of the borrower should the exploration activities show strong opportunities. If not, it will be considered a grant. The facility amount is considerably higher than the USD 100 million initial target.
The launch of the PGRDF was made official through the signing of a Memorandum of Agreement (MOA) between Energy Secretary Sharon Garin and Landbank president and CEO Ma. Lynette Ortiz during the 2025 Sustainable Energy Awards in Makati City. The facility was funded through a sovereign loan to the Philippine government from the Asian Development Bank (ADB).
“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,” said Garin.
“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,” added Rowena Cristina Guevara, Undersecretary of the Department of Energy (DOE).
The DOE will serve as the Executing Agency for the facility, providing oversight for the program and establishing the eligibility criteria and technical standards. Landbank will act the Manager and Administrator of the facility, overseeing loan applications, funding releases, collection, and program reporting.
The Philippines held the 2nd ranking of the top countries in installed geothermal power capacity for many years before it was overtaken by Indonesia in 2018. The DOE chief hopes that the facility will help the country regain its previous spot. The recent months have seen regained momentum for geothermal exploration in the Philippines, with greenfield sites being drilled in Amacan and Mt. Malinao.
Source: GMA News Online and Philippine News Agency
