The Philippines has officially launched a US$170 mn geothermal de-risking facility, aimed at accelerating early-stage geothermal exploration and drilling across the country.
The Philippine Geothermal Resource De-Risking Facility (PGRDF) allows companies to access funding where the government covers at least 50% of exploration or drilling costs through a conditionally repayable grant, reducing financial barriers for developers and investors.
The facility is set to become operational in the first quarter of 2026. Funding under PGRDF will be treated as a repayable obligation if the exploration activity identifies promising geothermal resources; otherwise, it will remain a grant. This allocation significantly exceeds the facility’s initial target of USD 100 million, reflecting strong government commitment to renewable energy growth.
The PGRDF launch was formalised during the 2025 Sustainable Energy Awards in Makati City, with the signing of a Memorandum of Agreement (MOA) between Energy Secretary Sharon Garin and Landbank President and CEO Ma. Lynette Ortiz. The facility is funded through a sovereign loan provided by the Asian Development Bank (ADB) to the Philippine government, underscoring international support for renewable energy expansion.
“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).
Under the program, the DOE will act as Executing Agency, overseeing eligibility criteria, technical standards, and overall program supervision. Landbank will serve as Manager and Administrator, handling loan applications, fund releases, collections, and reporting.
Historically, the Philippines ranked second globally in installed geothermal power capacity until being surpassed by Indonesia in 2018. With renewed momentum, including new greenfield exploration sites at Amacan and Mt. Malinao, the DOE aims for the PGRDF to help the country reclaim its leadership position in geothermal energy while contributing to a more resilient and sustainable energy mix.