The Department of Energy (DOE) is evaluating applications from 12 renewable energy developers seeking government financial assistance to expand geothermal power production.

Energy Undersecretary Rowena Guevara said that 12 project developers have submitted proposals to tap a newly established ₱10.7 billion geothermal de-risking facility,

While several initial applicants withdrew from the selection process, Guevara said the government has identified five alternative firms as backup candidates, signaling sustained private sector interest in capital-intensive deep-drilling operations.

The financial mechanism is structured to absorb the initial capital risks inherent in early-stage geothermal exploration. Developers receive exploration funding in the form of a loan.

If preliminary drilling fails to yield commercially viable steam fields, the debt converts into a non-repayable government grant, mitigating severe balance-sheet losses for private firms.

Guevara said the DOE is sharing its shortlist of prospective applicants with multilateral partners, including the Asian Development Bank (ADB), as well as the Department of Finance and the Department of Economy, Planning and Development.

However, Guevara declined to name the individual corporate applicants, citing ongoing evaluation procedures.

But she revealed the prospective pool of developers includes foreign entities operating through joint venture structures with local companies, adhering to statutory ownership requirements.

The ADB plans to launch an international tender to retain technical experts who will assist energy officials in auditing and evaluating the merit of each application.

Approved in July, the ₱10.7 billion facility aims to unlock greenfield geothermal reserves across the archipelago.

Unlike intermittent renewable energy sources such as solar and wind, geothermal installations supply continuous baseload electricity, making them vital for stabilizing the national power grid.

Capital assistance under the program will allow approved developers to drill critical exploratory wells and accelerate preliminary site infrastructure.

Alongside direct state funding, the DOE is backing legislative initiatives to grant enhanced tax and investment incentives to geothermal operators. The Philippines currently ranks as the world’s third-largest producer of geothermal energy, behind the United States and Indonesia, with an installed capacity of roughly 1,984 megawatts