Department of Energy Initiates $250 Million Loan Program to Boost Geothermal Energy Investments
The Department of Energy (DOE) is launching a $250 million loan program aimed at promoting investment in geothermal energy exploration in the Philippines. Undersecretary Mylene Capongcol announced the initiative during the Economic Journalists Association of the Philippines forum, stating that the program will help mitigate the high costs associated with the initial exploration stages. The government will cover at least 50% of exploration costs, with the possibility of loans converting to grants if exploration fails. The DOE plans to submit the proposal for approval this year, with implementation expected next year.
Theia Market Signal Identification - AI AssistedThe Department of Energy (DOE) is taking significant steps to invigorate the geothermal energy sector in the Philippines through a newly proposed $250 million loan initiative. During a recent forum hosted by the Economic Journalists Association of the Philippines in Makati City, Undersecretary Mylene Capongcol outlined the objectives of the geothermal resource derisking facility, which is designed to attract investments by alleviating the financial burdens associated with the early stages of geothermal power development, particularly exploration.
Capongcol emphasized the challenges developers face, noting that the costs linked to exploration can be prohibitively high. The proposed loan facility aims to cover at least 50% of these exploration expenses, with loans convertible to grants if a project fails to yield sufficient steam for power generation. This innovative approach seeks to encourage developers to take calculated risks in a sector that has been overshadowed by the rapid growth of wind and solar energy alternatives.
The DOE is keen to revitalize geothermal projects, recognizing the country's untapped potential. Currently, the Philippines boasts an installed geothermal capacity of 1,952 megawatts, with assessments indicating the possibility of an additional 400 megawatts yet to be harnessed. With plans to submit the proposal to the Department of Economy, Planning and Development's investment coordination committee by year-end, the DOE aims to roll out this initiative by next year, paving the way for a more robust geothermal landscape in the Philippines.
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