THE Department of Energy (DoE) said it is hoping to finalize a loan from the Asian Development Bank (ADB) this year to launch a project that seeks to de-risk geothermal power investments.
“We’ve said we need geothermal de-risking, meaning to say the government and the private sector will share in the risks of exploration for geothermal,” Energy Undersecretary Rowena Cristina L. Guevara said at a forum on Friday.
“And we’re very happy to tell you that finally maybe we’ll have a loan from the Asian Development Bank just to do that,” she added.
The DoE has tapped the ADB for technical assistance to develop and implement a geothermal de-risking facility.
“Geothermal cost is very high at the beginning but after the 20-year period when the loan has been paid for the capital, it will become very cheap,” Ms. Guevara said.
Energy Assistant Secretary Mylene C. Capongcol said in September that the Philippines may need to obtain an initial $250 million to de-risk projects for potential geothermal developers.
The Philippines’ installed geothermal energy capacity was 1,952 megawatts (MW) in 2023, making it the third-biggest geothermal producer.
The DoE is monitoring 35 geothermal service contracts as of July 2024. Of the total, 20 are in the pre-development stage and 15 are in the development or commercial stage.
The government is scheduled to conduct the auction proper for the third round of the Green Energy Auction Program (GEAP) on Tuesday, Feb. 11, for which it has identified 12 qualified bidders.
It is set to offer geothermal, impounding hydro, and pumped-storage hydro capacities totalling 4,650 MW.
GEAP aims to promote renewable energy as a primary source of energy through competitive selection. It is designed to help the government increase the share of renewable energy in the power mix to 35% by 2030 and to 50% by 2040. — Sheldeen Joy Talavera
