Diokno: Ilocos region a strategic partner in clean energy transition

Finance Secretary Benjamin E. Diokno expressed confidence in the Ilocos region and the rest of Luzon’s vast renewable energy (RE) capabilities that will bring the country closer to its net zero goals during the Philippine Economic Briefing (PEB) in Laoag on August 14, 2023 at the Fort Ilocandia Resort, Laoag City.

“With vast renewable energy potential and massive reserves of mineral resources for clean energy technologies, the Philippines is determined to be a world leader in the Race to Net Zero. And the Ilocos region will be a strategic partner in this mission,” he said during his keynote address.

Regarded as the Renewable Energy Capital of Southeast Asia, Ilocos Norte houses the Bangui wind farm, which is the first in SEA. It is also home to the largest 150-megawatt (MW) wind farm located in Burgos. Soon, an even larger 160-MW wind farm will be completed in Pagudpud.

The province has become an ideal business destination in Northern Luzon due to its total wind potential capacity of 719 MW, total solar energy potential capacity of 312.5 MW, and strong hydropower generation.

To fast-track the transition to cleaner energy sources, the government recently opened up the Philippines’ RE sector to full foreign ownership to help increase its share in the power generation mix to 35 percent by 2030 and at least 50 percent by 2040.

“A more liberalized renewable energy sector will open the floodgates to more, high quality, and green jobs for Filipinos as the country makes the shift to a more modern and sustainable economic model,” Secretary Diokno said.

According to him, the Philippines has already made significant strides in introducing RE into its energy mix.

Citing data from the Department of Energy (DOE), Secretary Diokno said that from July 2022 to June 2023, the agency has awarded 126 RE contracts (72 solar, 30 wind, 20 hydropower, 2 biomass, 1 ocean, and 1 geothermal), with a total potential capacity of 31,131.7 megawatts.

The DOE also reported that the Ilijan Power Plant is producing 900 megawatts, which will improve the margin of supply and demand in Luzon.

The Ilocos Region has 490.65 MW of committed capacities that are expected to come online from 2023 to 2026. 255 MW