$250-M credit line for geo-power up by 2026

Geothermal power producers may soon access the government’s planned $250-million de-risking facility, with the rollout eyed by next year.

On the sidelines of the 6th Philippine International Geothermal Conference held in Makati City, Energy Undersecretary Rowena Cristina Guevara told reporters that they target to make the loans available by the second half of 2026.

Currently, Guevarra said they are completing the necessary documents for submission to the Investment Coordination Committee of the Department of Economy, Planning and Development.

Energy officials earlier said that the de-risking mitigation fund would require an initial $250 million. The proposed geothermal resource de-risking facility (GRDF) is envisioned to cost-share exploration drilling with qualified developers to de-risk geothermal resources at the predevelopment stage.

The exploration and drilling stage is considered the most risky part of the business. Players need to be ready and cough up about $10 million to $12 million a well, with no assurance that the resource would go commercial.

“So if it’s a $250-million fund, that’s good for at least 10 wells, which is a very good start for all those fledgling developers there,” Erlindo Angcoy Jr. told reporters. Angcoy is head of Geothermal Technology and Innovation at the National Geothermal Association of the Philippines (NGAP).

Guevara did not disclose how much additional geothermal capacity is expected to come online with the help of the funds.

Angcoy, meanwhile, said that the capacity would depend on the area. But he noted that NGAP can provide assistance to the firms given its network of scientific experts.