Key facts
- The Philippines approved the Philippine Geothermal Resource Derisking Facility (PGRDF).
- The fund is valued at 10.1bn pesos ($163.5 million).
- The PGRDF aims to reduce financial risks associated with geothermal exploration.
- The initiative seeks to encourage increased private investment in geothermal projects.
- The fund supports the Philippines' renewable energy targets for 2030 and 2040.
The Philippines has approved a 10.1bn peso ($163.5 million) Philippine Geothermal Resource Derisking Facility (PGRDF). The initiative aims to incentivize private investment, accelerate geothermal development, and bolster the nation's long-term energy security.
The PGRDF was greenlit during a meeting of the Philippines' Economy and Development Council, chaired by President Ferdinand Marcos. The Department of Energy (DOE) stated that the facility establishes a government-backed cost-sharing mechanism designed to mitigate the financial risks inherent in geothermal exploration, which is the most capital-intensive phase of project development. This de-risking is expected to encourage greater investment and expedite the progression of viable geothermal prospects to the project development stage, according to Energy Secretary Sharon Garin.
Garin further explained that the fund will help widen the pipeline of investible geothermal opportunities, enhance the power system's resilience, and decrease reliance on volatile imported fuel prices. The PGRDF aligns with the Philippines' renewable energy objectives, which target a 35% share by 2030 and 50% by 2040.
In 2025, the Philippines generated 117.9 TWh of electricity, with 24.5% derived from renewable sources. Geothermal power contributed 9.8 TWh, representing 8.3% of the country's total generation mix, according to data from the independent electricity market operator IEMOP. The PGRDF builds upon a geothermal de-risking roadmap developed by the DOE in partnership with the Asian Development Bank (ADB) in 2022. Data from the International Renewable Energy Agency (Irena) indicates that the Philippines held the third-largest installed geothermal power capacity globally in 2024.