The Department of Energy (DOE) and the Land Bank of the Philippines (LANDBANK) have formalized a partnership to operationalize the Philippine Geothermal Resource De-Risking Facility (PGRDF). Supported by the Asian Development Bank (ADB),  the program is designed to share exploration risks and costs for early-stage geothermal projects.

Energy Secretary Sharon S. Garin and LANDBANK President and CEO Ma. Lynette V. Ortiz signed a Memorandum of Agreement on December 16 during the 2025 Sustainable Energy Awards, with Energy Undersecretary Rowena Cristina L. Guevara and LANDBANK Senior Vice President Charlotte I. Conde also present as witnesses.

The PGRDF addresses the high upfront costs and uncertainty associated with geothermal exploration and initial drilling, particularly at the resource confirmation stage. Under the MOA, the DOE will serve as the Executing Agency, setting policy direction, technical standards, eligibility criteria, and providing overall program oversight. 

LANDBANK will act as Facility Administrator and Manager, evaluating sub-loan applications, releasing funds based on milestones, managing collections, and overseeing reporting.

“Geothermal development requires significant investment long before a single kilowatt is delivered to consumers,” Garin said. “Through the PGRDF, the government is helping de-risk the exploration stage so that viable prospects can move faster from resource confirmation to project development.”

Undersecretary Guevara said the PGRDF is expected to support geothermal capacity additions beyond the reference scenario in the Philippine Energy Plan 2023–2050.

“By de-risking exploration and enabling more projects to move from uncertainty to confirmation, we are widening the pipeline of investible geothermal opportunities and strengthening power system resilience,” she said.

The MOA establishes the institutional framework to implement the PGRDF, aligning policy oversight, technical evaluation, and financial administration under a single program.

What factors will determine the effectiveness of the PGRDF in moving projects from exploration to confirmation?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.