The Economy and Development Council (ED Council) of the Philippines has approved the PhP 10.7 billion (approx. USD 170 million) Philippine Geothermal De-Risking Facility (PGDRF), which aims to help reduce the upfront risk of geothermal exploration. The facility had been previously launched through the signing a Memorandum of Agreement signed between the Department of Energy and Landbank.
Through the PGDRF, 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. 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 was funded through a sovereign loan to the Philippine government from the Asian Development Bank (ADB).
In a statement, the National Geothermal Association of the Philippines (NGAP) commended the approval of the facility, stating that it represents a milestone towards revitalizing the local geothermal industry.
“The approval of the geothermal de-risking facility marks a significant milestone for the Philippine geothermal sector and underscores the government’s commitment to strengthening energy security through indigenous renewable energy resources,” said NGAP President Jaime Lemuel Austria.
The Philippines currently holds the third highest position globally in terms of installed geothermal power generation capacity. However, capacity growth in the past several years has been gradual, and has been outpaced significantly by neighboring Indonesia. The PGDRF is expected to provide a boost to geothermal exploration activities, especially as exploration of greenfield sites like Mt. Malinao, Southern Leyte, and Amacan continue to progress.
Registration for the upcoming 7th Philippine International Geothermal Congress is also now open. Under the theme “Sharpening the Geothermal TIP: Technology, Investment, and Policy,” the three-day event will showcase practical applications of technology advancements, updates on recent investments to the geothermal fields, and policies that enable further development. The event will be held on 2 – 4 September 2026 in Lipa City, Batangas.
Source: Business World and Manila Standard
