Geothermal developers call de-risking facility a ‘milestone’ event en route to energy security

GEOTHERMAL POWER producers said a P10-billion program aimed at reducing geothermal development risks will aid the Philippines in achieving energy security by easing the way for the use of indigenous power sources.

In a statement on Wednesday, the National Geothermal Association of the Philippines (NGAP) welcomed the approval of the Department of Energy’s (DoE) Philippine Geothermal Resource De-Risking Facility by the Economy and Development Council.

“The approval of the geothermal de-risking facility marks a significant milestone for the Philippine geothermal sector and underscores the government’s commitment to strengthening energy security through indigenous renewable energy resources,” NGAP President Jaime Lemuel Austria said.

The de-risking facility aims to support developers by sharing exploration costs.

Geothermal energy, which is suitable as a source of  baseload power, involves large upfront investments before a resource is confirmed as viable.

The DoE tapped the Asian Development Bank for technical assistance to develop and implement the de-risking facility.

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. — Sheldeen Joy Talavera