The Department of Energy (DOE) of the Philippines is working to secure USD 250 million in funding for a facility aimed at de-risking geothermal energy projects.
The Geothermal Resource De-Risking Facility (GRDF) framework has been finalized, and discussions with financing partners are underway, according to Mylene Capongcol, Director of the Renewable Energy Management Bureau.
The GRDF, developed in collaboration with the Asian Development Bank, aims to provide up to 50% of the initial exploration and drilling costs for eligible geothermal developers.
Exploration costs for the first two wells typically range from Php1.5 to 2 billion (USD 26.8 to 35.7 million), making government subsidies crucial, noted Marvin Bailon, Vice-President of Energy Development Corporation.
Talks are ongoing with institutions such as the International Monetary Fund, Department of Finance, Philippine Guarantee Corp., Development Bank of the Philippines, and Land Bank of the Philippines. The updates were shared during the 5th Philippine International Geothermal Conference in Makati.
