The Department of Energy (DOE) said it hopes to submit its $250 million proposal for the Geothermal Resource Disease Risk Facilities (GRDF) to the Coordinating Committee for Economic, Planning and Development Investment (DEPDEV ICC) over the year.
“We have almost completed the preparations to seek DEPDEV ICC approval,” Energy Commissioner Mylene C. Capongcol told The BusinessWorld.
The U.S. Department of Energy has used the Asian Development Bank (ADB) for technical assistance to develop and implement risk-free facilities.
According to ADB, the purpose of GRDF is to “reactivate Greenfield investment geothermal,” which has been stranded since 2001, reducing investment risks by sharing exploration costs and risks with private developers.
“The facility will fund or share exploration and drilling costs, which is the most dangerous part of the development,” Ms Capongcol said.
She added: “If they succeed, they will repay the money extended to them. If not, it will be a grant.”
The funding will be provided by US$60 million from ASEAN Catalytic Green Financing Concession Fund and ADB.
The Philippines installed geothermal capacity is 1,952 megawatts (MW) in 2023, making it the third largest geothermal producer.
As of April, the U.S. Department of Energy is monitoring 31 geothermal service contracts with a total potential capacity of 1,077.22 MW.
In June, DOE issued a reward notice for bidding for three geothermal projects with a total capacity of 30.89 MW, as part of the third round of green energy auctions.
The GEA program is designed to help the Philippines achieve its renewable energy (RE) goal to increase RE’s share of power generation portfolio to 35% by 2030 and 50% by 2040. Sheldeen Joy Talavera
