DOE, Landbank to operationalize ‘de-risking’ facility for geothermal exploration 

The Department of Energy (DOE) and state-owned Land Bank of the Philippines on Tuesday signed an accord to operationalize a multi-million dollar loan program to attract investors in geothermal energy in the country by “de-risking” their exploration investments.

During the 2025 Sustainable Energy Awards in Makati City, Energy Secretary Sharon Garin and Landbank president and CEO Ma. Lynette Ortiz signed a memorandum of agreement (MOA) to operationalize the Philippine Geothermal Resource De-Risking Facility (PGRDF).

The $170-million PGRDF is an initiative aimed at accelerating early-stage geothermal exploration with the government shouldering at least 50% of the cost of exploration or drilling for potential geothermal power sources through a loan.

The loan facility was funded by the Asian Development Bank (ADB) through a sovereign loan to the government.

The initiative aims to address the high upfront expenses and inherent uncertainty of exploration and initial drilling—among the persistent barriers to geothermal power development.

“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,” Garin said. 

“This partnership with Landbank strengthens our ability to expand clean and dependable power supply, support energy security, and advance a just and sustainable energy transition that ultimately benefits Filipino communities,” the Energy chief said.

Under the accord, 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.

“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,” said DOE Undersecretary Rowena Cristina Guevara.

“This is how we translate energy transition goals into firm capacity that supports affordability and long-term energy security for Filipino consumers,” said Guevarra.

Based on the DOE’s data, the Philippines has a total geothermal installed capacity of 1,952 megawatts (MW) as of 2024.

The Energy Department’s assessment also showed the country still has a potential of an additional 400 MW of geothermal power to be tapped. — BM, GMA Integrated News