Philippines eyes $100m ADB loan for geothermal de-risking
ThermaPrime's 2000 HP drilling rig in PGPC'S concession area in Albay, Philippines (source: ThermaPrime)
Alexander Richter
6 Jun 2025
The Philippines plans to access $100M from an ADB-led geothermal de-risking facility to reduce risks for investors and support new geothermal development.
The Philippine government is planning to tap an initial $100 million from the Geothermal Resource De-Risking Facility managed by the Asian Development Bank (ADB), according to the Department of Energy (DoE). The facility aims to reduce investment risks in geothermal exploration and is part of a larger $250 million financing package.
The Philippine government is planning to tap an initial $100 million from the Geothermal Resource De-Risking Facility managed by the Asian Development Bank (ADB), according to the Department of Energy (DoE). The facility aims to reduce investment risks in geothermal exploration and is part of a larger $250 million financing package.
“It’s possible that our first tranche is $100 million. That’s what we’re looking at. We want to make sure that the private sector can absorb the facility offering,” said Energy Undersecretary Rowena Cristina L. Guevara during the ADB Asia Clean Energy Forum earlier this week.
According to the ADB project page, the facility is backed by $190 million from ADB’s ordinary capital resources and $60 million in concessional funds from the ASEAN Catalytic Green Finance Facility. The program is designed to address the high-risk profile of geothermal power development and encourage private sector participation.
The geothermal de-risking facility is currently in its final preparatory stage. The DoE is in discussions with the Land Bank of the Philippines (LANDBANK) to serve as the facility’s manager, with operations expected to begin next year.
Approval is still pending from the Investment Coordination Committee of the National Economic and Development Authority (NEDA), according to Energy Assistant Secretary Mylene C. Capongcol.
As of 2023, the Philippines had an installed geothermal capacity of 1,952 MW, ranking third globally behind Indonesia and the United States. However, the third Green Energy Auction in February 2024 attracted bids for only 30.9 MW of geothermal capacity, far short of the 100 MW target – highlighting the need for mechanisms to improve investor confidence.
If implemented, the de-risking facility could help unlock new geothermal potential and strengthen the country’s clean energy transition.
Source: BW Online
