Manila: Energy Secretary Sharon Garin on Tuesday expressed optimism that the derisking facility eyed for geothermal energy projects will be in place by December 2025 to encourage more investments and boost capacity. In a media briefing on the sidelines of the Singapore International Energy Week, Garin said they are ‘wrapping up the agreement’ with Landbank of the Philippines for the facility, but she declined to give any amount.

According to Philippines News Agency, the derisking facility will be managed by the Asian Development Bank (ADB), with the loan amounting to around USD250 million. The funding will be used to help prospective investors address risks from the geothermal projects. Garin said the derisking facility is being instituted since the government included geothermal energy under its renewable energy program.

Jay Joel Soriano, First Gen Corporation vice president and head of Strategy and Planning, in his speech during the event, said geothermal power is the ‘unsung hero of 24/7 renewables’ since it is the ‘most reliable clean energy at all’ and is the most sustainable because it doesn’t have to consider time availability of energy sources. He expressed sadness for the lack of incentives for geothermal energy proponents, unlike the other options, since the former is considered an old technology.

Soriano’s statement was acknowledged by Garin, who assured that measures are being done to address the situation. ‘I think that’s a valid request and concern, and we will (address the situation).We haven’t had big success in auctioning geothermal energy, but we understand the Philippines has a huge potential given that it should be number one in the world,’ she said.

Department of Energy data showed that there are 31 geothermal energy projects in the country, with a potential capacity of 1,077.218 megawatts (MW). Installed capacity to date is around 1,951.735 MW.