The Philippines has taken a significant step towards achieving energy security with the approval of a P10-billion program aimed at reducing geothermal development risks. This initiative is expected to ease the way for the use of indigenous power sources, providing a boost to the country's energy sector. The program is designed to support developers by sharing exploration costs, making it more viable for them to invest in geothermal energy. This move is seen as a crucial step towards strengthening the country's energy security through renewable energy resources.
The geothermal de-risking facility has been welcomed by industry stakeholders, who see it as a major milestone for the Philippine geothermal sector. The facility aims to reduce the risks associated with geothermal development, which can be a costly and time-consuming process. By sharing exploration costs, the facility is expected to encourage more developers to invest in geothermal energy, which is suitable as a source of baseload power. This can provide a stable and reliable source of energy for the country.
The Department of Energy has tapped the Asian Development Bank for technical assistance to develop and implement the de-risking facility. This partnership is expected to provide the necessary expertise and support to ensure the success of the program. With the Philippines already being the third-biggest geothermal producer, this initiative is expected to further boost the country's geothermal energy capacity. As of April, there are 31 geothermal service contracts being monitored by the Department of Energy, which have a total potential capacity of 1,077.22 MW.
The approval of the geothermal de-risking facility is seen as a significant commitment by the government to strengthen energy security through indigenous renewable energy resources. The Philippine geothermal sector is expected to benefit from this initiative, which can provide a stable and reliable source of energy for the country. With the country's installed geothermal energy capacity already at 1,952 megawatts, this program is expected to further increase the country's energy production and reduce its reliance on imported fuels.
