The Department of Energy (DOE) and the Land Bank of the Philippines have signed a memorandum of agreement to operationalize the Philippine Geothermal Resource De-Risking Facility (PGRDF), a $170-million program aimed at reducing the financial risks of early-stage geothermal exploration.
Supported by the Asian Development Bank through a sovereign loan, the facility shares exploration costs and mitigates the high upfront uncertainty that often deters geothermal projects. By lowering risks in the most capital-intensive phase, the program allows developers to drill exploration wells with greater confidence and move new projects toward full development.
Energy Secretary Sharon Garin said the PGRDF is a “targeted intervention” to unlock reliable, low-carbon energy at scale. “Through this facility, the government helps de-risk exploration so viable prospects can advance faster from resource confirmation to project development,” she said.
Under the agreement, DOE will provide policy direction and program oversight, while Land Bank will manage funding, milestone releases, and reporting. Energy Undersecretary Rowena Cristina Guevara said the program will expand the country’s geothermal capacity beyond current Philippine Energy Plan projections, strengthening energy security and reducing dependence on imported fuels.
As of September 2025, geothermal power contributes 2,026 MW—or 6.3 percent—of the country’s 31,916-MW total grid capacity. The Philippines remains the world’s third-largest geothermal producer, after the United States and Indonesia.
The PGRDF marks a significant step in accelerating clean energy development by sharing risk, boosting investor confidence, and advancing a sustainable energy transition for Filipino communities.
