A geothermal de-risking facility is on track for roll-out next year, with the Department of Energy (DOE) going full blast to complete all required submissions to the Investment Coordination Committee (ICC) this month.
Designed to lower the steep upfront costs that have long hindered exploration, the facility is seen as a potential catalyst for unlocking new geothermal prospects.
“We are in the process of submitting to the ICC. We’ve already started because there are a lot of documents required,” Energy Undersecretary Rowena Cristina L. Guevara told reporters Wednesday at a forum hosted by the National Geothermal Association of the Philippines (NGAP) in Makati City.
“We aim to finish all submissions within the month so we can be evaluated. By December, we should be able to make the call,” she added.
Guevara said the launch will coincide with the start of lending in the second half of 2026.
“The actual launch will be when lending begins, which is in the second half of next year,” she said, noting that the initial loan package is set at $175 million, with room to expand depending on investor interest.
The de-risking plan—backed by a loan from the Asian Development Bank (ADB)—has already secured support from the Department of Finance and the National Economic and Development Authority.
By sharing exploration risks with private developers, the DOE aims to reinvigorate geothermal development, which has lagged behind other renewables due to drilling costs of up to $12 million per well.
In a separate interview, NGAP President Dr. Jaime Jemuel C. Austria Jr. said the plan could jumpstart investment.
“We’re very excited about this news from Usec. Guevara because geothermal is costly to develop, and this facility will give us the money to drill the first exploration wells,” he said.
Austria added that the risk-sharing model provides clear incentives.
“If drilling is successful, it becomes a loan. If it’s not, it becomes a grant. That gives companies exploring new areas a strong incentive to drill and discover more resources,” he said.
NGAP Trustee Erlindo C. Angcoy Jr. said the funding could support at least 10 wells, calling it “a very good start for all those fledgling developers.” Each well, he added, could generate between 5 and 50 megawatts, depending on location.
The government’s renewable energy roadmap targets 52 gigawatts of installed capacity by 2040.
While solar and wind will lead, Guevara emphasized that hydro and geothermal remain vital to reducing dependence on imported liquefied natural gas.
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The Department of Energy (DOE) is racing to complete all required submissions to the Investment Coordination Committee (ICC) this month to keep the government’s
A geothermal de-risking facility is on track for rollout next year with
Designed to lower the steep upfront costs that have long hindered exploration, the facility is seen as a potential catalyst for unlocking new geothermal prospects.
“We are in the process of submitting to the ICC. We’ve already started because there are a lot of documents required,” Energy Undersecretary Rowena Cristina L. Guevara told reporters Wednesday at a forum hosted by the National Geothermal Association of the Philippines (NGAP) in Makati City.
“We aim to finish all submissions within the month so we can be evaluated. By December, we should be able to make the call,” she added.
Guevara said the launch will coincide with the start of lending in the second half of 2026.
“The actual launch will be when lending begins, which is in the second half of next year,” she said, noting that the initial loan package is set at $175 million, with room to expand depending on investor interest.
The de-risking plan—backed by a loan from the Asian Development Bank (ADB)—has already secured support from the Department of Finance and the National Economic and Development Authority.
By sharing exploration risks with private developers, the DOE aims to reinvigorate geothermal development, which has lagged behind other renewables due to drilling costs of up to $12 million per well.
In a separate interview, NGAP President Dr. Jaime Jemuel C. Austria Jr. said the plan could jumpstart investment.
“We’re very excited about this news from Usec Guevara because geothermal is costly to develop, and this facility will give us the money to drill the first exploration wells,” he said.
Austria added that the risk-sharing model provides clear incentives.
“If drilling is successful, it becomes a loan. If it’s not, it becomes a grant. That gives companies exploring new areas a strong incentive to drill and discover more resources,” he said.
NGAP Trustee Erlindo C. Angcoy Jr. said the funding could support at least 10 wells, calling it “a very good start for all those fledgling developers.” Each well, he added, could generate between 5 and 50 megawatts, depending on location.
The government’s renewable energy roadmap targets 52 gigawatts of installed capacity by 2040.
While solar and wind will lead, Guevara emphasized that hydro and geothermal remain vital to reducing dependence on imported liquefied natural gas.
