The Department of Energy (DOE) is nearing the completion of a loan agreement from the Asian Development Bank (ADB) to fund a geothermal de-risking program, crucial for attracting both public and private investments in renewable energy (RE).
Energy undersecretary Rowena Cristina Guevara emphasized the government’s commitment to easing the high upfront costs of geothermal exploration, which can run as high as USD8 million per drill. The DOE aims to establish a USD250 million fund to share exploration risks, making geothermal more accessible and affordable in the long term.
Additionally, the DOE expressed optimism for the development of pump storage hydro (PSH) projects, with an upcoming auction under the Green Energy Auction program (GEA-3) involving 4,250 MW of capacity projects. The projects will help stabilize the energy grid, particularly by balancing renewable sources like solar. With geothermal contributing 6.6 percent and PSH 2.5 percent of the country’s total energy mix as of November 2024, the DOE’s initiatives signal significant strides toward strengthening the countyr’s renewable energy sector.
