Philippines Powers Up Clean Energy with $170M Geothermal Boost
- December 23, 2025
The Philippines is taking a major stride in expanding its clean energy infrastructure with the launch of a $170-million geothermal de-risking facility. The program is designed to help developers overcome some of the most persistent challenges in geothermal power, the high upfront costs and uncertainties of early exploration.
The initiative is expected to accelerate the country’s transition toward a more sustainable energy future. The program was formalized through a memorandum of agreement between the Department of Energy (DOE) and the LANDBANK of the Philippines, signed on December 16 during the 2025 Sustainable Energy Awards.
DOE Secretary Sharon S. Garin highlighted the significance of the facility, noting that geothermal development requires substantial investment long before a single kilowatt reaches consumers. “Through the PGRDF (Philippine Geothermal Resource De-risking Facility), the government is helping the exploration stage so that viable prospects can move faster from resource confirmation to project development,” Garin said.
By reducing financial risks for developers, the initiative is expected to speed up project timelines, unlock new geothermal opportunities, and expand the nation’s renewable energy (RE) capacity.
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De-Risking Geothermal Development
The PGRDF is structured to provide critical financial support during the most capital-intensive stage of geothermal development, exploration. Funded through a sovereign loan from the Asian Development Bank (ADB), the facility allows developers to drill exploration wells with greater confidence. By mitigating the risks associated with early-stage projects, the program encourages investment in greenfield geothermal prospects that might otherwise be considered too uncertain.
Under the memorandum of agreement, the DOE will serve as the executing agency, overseeing policy direction, management, technical criteria, qualification requirements, and overall program supervision.
LANDBANK, as the facility administrator and manager, will handle loan requests, phased fund disbursements, repayments, and progress reporting. The collaboration combines government oversight with financial management expertise to ensure that exploration projects are properly evaluated, funded, and guided toward successful development.
“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,” Garin added. The initiative not only addresses financial barriers but also emphasizes the broader societal benefits of accelerating RE projects.
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Philippines Accelerating RE Growth
DOE Undersecretary Rowena Cristina L. Guevara, who oversees the country’s RE program, said that the PGRDF is expected to fast-track and increase geothermal power output beyond the targets set in the Philippine Energy Plan 2023–2050 by enabling more promising projects to move forward. With financial risks addressed from the start, developers can turn uncertain prospects into confirmed projects faster, creating a larger pool of viable geothermal investments.
“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,” Guevara said.
The program also aims to restore the Philippines’ standing as a global leader in geothermal energy, after a recent decline in investor interest due to high exploration costs and policy challenges.
The operationalization of the PGRDF was formalized with the agreement signed by Garin and LANDBANK President and Chief Executive Ma. Lynette Ortiz, witnessed by Guevara and LANDBANK Senior Vice President Charlotte Conde. With this milestone, the government expects to attract more geothermal projects, ensure a reliable RE supply, and reinforce long-term energy security.
By addressing the financial and technical barriers at the earliest stage, the PGRDF promises to transform promising geothermal prospects into operational projects. The initiative is poised to catalyze a new wave of geothermal exploration, reduce dependence on imported fuels, and deliver affordable, clean energy to Filipino communities, marking a decisive step toward a sustainable and resilient energy future.
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