The Department of Energy (DOE) is pushing a new initiative aimed at reducing the cost of geothermal power by helping developers manage the high risks and expenses associated with exploration and drilling.
DOE Undersecretary Mylene Capongcol, speaking on Power Shift, said the agency is proposing the Philippine Geothermal Resource De-Risking Facility, a government-backed financing mechanism designed to support early-stage geothermal projects.
Under the proposed scheme, government funding would be used to help cover drilling costs, which are among the most capital-intensive and risky phases of geothermal development. Failed wells may be treated as grants, while successful projects would be required to repay assistance as loans.
The DOE said the risk-sharing approach is intended to encourage more private investment in geothermal energy by lowering upfront financial exposure and improving project viability.
It added that reduced development costs could eventually translate into lower electricity generation prices from geothermal sources, benefiting consumers while supporting the country’s shift toward cleaner energy.
The proposed facility is part of broader government efforts to expand renewable energy capacity and strengthen long-term energy security.