Makati city: Power sector industry players intending to explore geothermal power in the Philippines can tap into a USD170-million (around PHP10 billion) de-risking facility starting in the first quarter of 2026. This development follows the signing of a memorandum of agreement (MOA) between Department of Energy (DOE) Secretary Sharon Garin and Land Bank of the Philippines (LandBank) President and Chief Executive Officer Ma. Lynette Ortiz during the Sustainable Energy Awards 2025 in Makati City.

According to Philippines News Agency, the MOA operationalizes the Philippine Geothermal Resource De-Risking Facility (PGRDF), with funding sourced from the Manila-based Asian Development Bank (ADB) through a sovereign loan to the national government. "This partnership represents a significant step toward accelerating geothermal development and reducing investment risks in the sector," Garin stated in her speech.

In an interview with journalists, the DOE chief expressed the government's ambition to restore the Philippines' position as the world's second-leading country in geothermal power. The nation has fallen to third or fourth in rank due to decreased investor interest, attributed to the high costs of exploration and governmental policy challenges. Garin explained that funding availed by power sector players from the facility will be considered an obligation if exploration activities present strong opportunities, but will be deemed a grant if they do not.

The DOE hopes that this facility will lead to more geothermal projects, ensuring the availability of renewable energy capacity in the country. Garin emphasized that successful projects would be instrumental in achieving this goal.