Geothermal investments gaining steam – ADB
MANILA, Philippines — The Asian Development Bank (ADB) expects the government’s geothermal de-risking facility to unlock fresh investments that could boost the Philippines’ standing on the global stage.
“I think we can see increased interest already in investors who are looking into (geothermal) exploration, and that’s very positive,” said Pavit Ramachandran, deputy director-general for Southeast Asia at ADB.
He noted that one of the “real challenges” in geothermal development lies in the exploration stage due to high costs and risks involved.
Drilling wells does not guarantee viable results, leading to significant investments without assured returns for developers and investors.
“So, you’re seeing stranded assets because of that. How do you incentivize investments to come in, and hence the focus on the de-risking facility,” Ramachandran said.
With the geothermal risk reduction strategy, the Department of Energy (DOE) aims to share the cost of geothermal drilling with qualified developers during the pre-development stage.
The facility was developed in partnership with the ADB and Land Bank of the Philippines.
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