An executive from a renewable energy firm has expressed optimism for the growth of the Philippines’ geothermal energy sector following the establishment of the P10-billion Philippine Geothermal Resource De-risking Facility (PGRDF).
The facility is concessionally funded by Manila-based Asian Development Bank (ADB), which will provide financing for geothermal energy exploration, either through grants or loans depending on the results of the exploration activities.
Under the proposed Department of Energy (DOE) Circular, which will be opened for public consultation, 50 percent of the total eligible exploration costs will be funded by the facility, while the remaining half will be shouldered by the energy firm.
First Gen Corporation (First Gen) president and chief operating officer (COO) Francis Giles Puno on Thursday said that while geothermal energy is among the most vital indigenous resources in the Philippines, operating these plants “is quite challenging” and “is not for the faint-hearted.”
He said the de-risking facility would allow them to advance their exploration program.
“It’s hard to do exploration, to see how good drilling is,” Puno said after the Power Economics Forum 2026 in Ortigas City.
He said developers face massive uncertainty over whether they will successfully tap into necessary resource elements like heat, water volume, and water permeability.
However, Puno said the new state-backed de-risking facility would change the landscape by allowing developers to confidently advance their exploration programs.
“If we’re allowed to do that, and we’re more successful in the drilling campaign, then that will lead to more geothermal development,” he added. “That will lead to the success of that program that is being sponsored by the government.”
During the same interview, Energy Development Corporation (EDC) president and COO Jerome Cainglet said the company spends around USD6 million to USD10 million to drill a single well when testing for geothermal capacity.
“So, at least with the de-risking facility, if you’re not successful, half of that (de-risking facility funding) becomes a grant. But the government won’t lose anything because if you’re successful, then it becomes a loan,” he said.
“And it’s a good signal from the government that the government is bent on helping geothermal take off in the Philippines.” (PNA)
