SEVENTEEN companies have expressed interest in tapping a P10-billion government facility aimed at reducing risks associated with geothermal exploration, according to the Department of Energy (DoE).
Energy Undersecretary Rowena Cristina L. Guevara told reporters last week that 12 companies are already in the pipeline for the facility, while five others are ready to participate should any of the initial applicants withdraw.
She said the DoE had identified the interested companies for presentation to the Asian Development Bank (ADB), Department of Finance (DoF), and Department of Economy, Planning, and Development (DEPDev).
“The ADB will soon issue a tender for experts who will assist the DoE in evaluating the applications,” she said.
In July, the Economy and Development Council under DEPDev approved the Philippine Geothermal Resource De-Risking Facility proposed by the DoE.
The facility seeks to reduce financial risks during geothermal exploration, which requires significant upfront spending before developers can determine whether a resource is commercially viable. The program involves a cost-sharing arrangement for exploration drilling.
“Geothermal development requires significant investment long before a single kilowatt is delivered to consumers,” Energy Secretary Sharon S. Garin said.
“Through the Philippine Geothermal Resource De-Risking Facility, the government is helping de-risk the exploration stage so that viable prospects can move more quickly from resource confirmation to project development,” she added.
Geothermal energy can provide baseload power, but exploration carries significant financial risks because developers must make large upfront investments before confirming whether a resource is commercially viable.
The Philippines had 1,952 megawatts (MW) of installed geothermal capacity in 2023, making it the world’s third-largest geothermal power producer.
As of April, the DoE was monitoring 31 geothermal service contracts with a combined potential capacity of 1,077.22 MW. — Sheldeen Joy Talavera
