The National Geothermal Association of the Philippines (NGAP) expressed strong optimism for the future of local renewable energy following the approval of the ₱10.07 billion Philippine Geothermal Resource De-Risking Facility (PGRDF) by the Economy and Development Council. The landmark fund specifically targets high upfront exploration and initial drilling costs, which have historically acted as barrier to greenfield geothermal projects. By absorbing a portion of the financial uncertainties, the facility targets unlocking vital indigenous baseload energy, reduce the country’s reliance on imported fuels, and bolster long-term energy security.
As the country’s first dedicated risk-sharing mechanism for geothermal exploration, the PGRDF is the result of extensive collaboration between NGAP, the Department of Energy (DOE), financial institutions, and international partners like the Asian Development Bank. Under an operational agreement signed last December, the DOE will guide policy and technical standards, while the Land Bank of the Philippines will manage applications, financial releases, and reporting.
The initiative marks a significant step for the Philippines, which currently stands as the world’s third-largest geothermal energy producer behind the United States and Indonesia. According to recent DOE data from March 2026, geothermal power contributes 1,994 megawatts, roughly 6.2 percent, to the nation’s total installed grid capacity. Moving forward, NGAP has committed to providing continuous technical expertise and stakeholder support to maximize the impact of the newly approved fund.
