The Department of Energy (DOE) is drafting a proposal for a dedicated Geothermal Bill aimed at granting special incentives and regulatory treatment to geothermal developers, part of a broader plan to revive the sector and tap an estimated 2,000 megawatts (MW) of untapped capacity nationwide.

Energy Secretary Sharon Garin said the measure seeks to give geothermal energy “special treatment” due to its complex and capital-intensive nature compared with other renewables like solar and wind.

“It needs special treatment because it’s not like you just harvest solar or wind power, geothermal there is more to it,” Garin said. She added geothermal requires drilling, exploration, and huge upfront capitalization, which calls for  better incentives—both fiscal and non-fiscal.

Speaking with reporters at the sidelines of the Singapore International Energy Week (SIEW), Garin said the bill will include tax incentives, improved cost recovery mechanisms, and updated investment terms to make geothermal exploration more financially viable.

“We’re drafting now a proposal for a bill on geothermal specifically. So at least we can go back on track on geothermal. It’s really one of our best assets,” Garin said 

Meanwhile, DOE Undersecretary Felix William Fuentebella, who joined Garin at the SIEW said the agency is also eyeing on investing in geoscientific mapping to reduce uncertainties and attract developers to new geothermal sites.

He explained that the gradiometric survey, which covers Central Philippines and parts of Mindanao, is designed to identify potential geothermal “anomalies” or active geological formations.

Gradiometric surveys help locate the geological structures and heat pathways that indicate where geothermal resources are most likely found—making them a valuable, non-invasive first step before more expensive seismic or drilling work.

“Once the gradiometric survey is done—which is like an X-ray—we will move to CT scan mode. If we see an anomaly, we’ll go 3D CT scan, focusing on that area,” Fuentebella said.

Fuentebella said it is essential to provide the data foundation for private developers planning to invest in exploration.

Garin confirmed that the DOE has requested additional funding to complete the mapping program.

“We are really pushing for it. It’s a very expensive endeavor, but the returns are big,” she said. “Eventually, the exploration will be done by the private sector. What we want is to lessen the risk. We need better information to guide them.”

The DOE’s planned Geothermal Bill and survey program come on the heels of the government’s move to finalize a geothermal de-risking facility with the Land Bank of the Philippines and the Asian Development Bank (ADB) before the end of the year.

The de-risking facility, as previously reported, will serve as a risk-sharing mechanism to help developers finance exploration. If a drilling project fails to find a viable resource, the fund will treat the cost as a grant; if successful, it converts into a loan repayable through project revenues.

The Philippine government is also preparing to tap an initial $100 million from ADB’s Geothermal Resource De-Risking Facility, part of a $250 million financing package, to make early-stage drilling and validation less risky for private investors.

Fuentebella said both the de-risking mechanism and the proposed bill aim to give the geothermal sector the predictability and financial support it needs to regain investor confidence.

“It’s very site-specific,” he said. “There’s a lot of capitalization cost, but in the long run, it’s like your fuel is free. What we want is to address the risk — that’s why we’re doing the X-rays and CT scans.”

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