THE Department of Energy (DoE) said it hopes to submit its $250-million geothermal resource de-risking facility (GRDF) proposal to the Department of Economy, Planning, and Development Investment Coordination Committee (DepDev ICC) within the year.
“We are almost done with the preparations to seek DepDev ICC approval,” Energy Undersecretary Mylene C. Capongcol told BusinessWorld.
The DoE has tapped the Asian Development Bank (ADB) for technical assistance to develop and implement the de-risking facility.
According to the ADB, the GRDF aims to “reactivate greenfield investment in geothermal,” which has been stranded since 2001, by reducing investment risk during the pre-development stage through sharing exploration costs and risk with the private developers.
“The facility will fund or co-share the cost of exploration and drilling which is the riskiest part of the development,” Ms. Capongcol said.
“If they succeed, they will pay back the money extended to them. If not, it will be a grant,” she added.
The funding will be provided $60 million by the ASEAN Catalytic Green Finance concessional funds and $190 million by the ADB.
The Philippines’ installed geothermal energy capacity was 1,952 megawatts (MW) in 2023, making it the third-biggest geothermal producer.
As of April, 31 geothermal service contracts are being monitored by the DoE, which have a total potential capacity of 1,077.22 MW.
In June, the DoE issued notices of award to three geothermal power project bids with a combined capacity of 30.89 MW, part of the third round of green energy auction.
The GEA program is designed to help the Philippines achieve its renewable energy (RE) goal of increasing the share of RE in the power generation mix to 35% by 2030 and 50% by 2040. — Sheldeen Joy Talavera