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 will come from
solar power projects, 230
MW from wind projects,
and 5.65 MW from hydropower projects.
Apart from RE,
the government is ramping up its infrastructure
programs in the largest
island group through the
implementation of 194
high-impact Infrastructure
Flagship Projects (IFPs).
One hundred thirty-two or
68 percent of these projects are located in Luzon
with an indicative total cost
of PHP 6.1 trillion.
This includes the
Laoag International Airport
Development Project, the
EDSA Greenways, the
Naga Airport Development Project, the Laguna
Lakeshore Road Network
Project (LLRN), the Tarlac–Pangasinan–La Union
Expressway (TPLEX) Extension Project, and the
Ilocos Norte-Ilocos SurAbra Irrigation Project
(INISAIP).
“Improving road
networks and increasing
the capacity of our airports
are important to revitalize
the tourism industry, especially in places like Laoag
which serves as the main
gateway for other destinations in the region,” Secretary Diokno said.
In line with this,
the government will be
implementing the National Tourism Development
Plan (NTDP) 2023-2028
that outlines strategies to
make tourism more innovative, inclusive, and globally competitive.
“From ecotourism to energy security,
sustainability is woven into
the very fabric of our development agenda,” Secretary Diokno said.
During the first
panel discussion, Bangko Sentral ng Pilipinas
(BSP) Eli M. Remolona,
Jr. shared that the BSP is
championing sustainability
in the banking sector by
directing financial institutions to do vulnerability
assessments and climate
stress testing.
Furthermore, the
BSP is developing a taxonomy of bank assets
classify and assess sustainable and financially
inclusive investments in
hopes of changing investment behavior.
On the budget
side, Department of Budget and Management
(DBM) Secretary Amenah
F. Pangandaman informed
investors that PHP 1.34
trillion of the proposed national budget for 2024 has
been earmarked for the island of Luzon.
The DBM has
also climate-tagged the
budget, giving it a 9.4-percent share amounting to
PHP 543.45 billion, which
is in line with the National Climate Change Action
Plan (NCCAP) 2011-2028.
On the Philippine
Development Plan (PDP)
2023-2028, National Economic and Development
Authority (NEDA) Undersecretary Carlos Bernardo
O. Abad Santos emphasized the need to have
sustainable improvements
in the living standards of
Filipinos.
As one of the 6
cross-cutting strategies
identified in the PDP, the
National Innovation Council (NIC), chaired by President Ferdinand R. Marcos,
Jr. and vice-chaired by
NEDA, approved the National Innovation Agenda
and Strategy Document
(NIASD) 2023-2032 to
improve innovation governance and establish a
dynamic innovation ecosystem that fosters a culture of innovation driven
by market demands.
Meanwhile, the
Ilocos Regional Development Plan (RDP) 2023-
2028 targets to lower
poverty incidence from
the current 14.3 percent
to 7.3 percent and achieve
a gross regional domestic
product (GRDP) of 7.0 to
7.5 percent by 2028.
For the private sector, President of
Philippine Chamber of
Commerce and Industry
(PCCI) Ilocos Norte Atty.
Cherrie Grace P. BarengAsistin shared agriculture,
tourism, and overseas
Filipino remittances to be
the bright spots in the region. As for challenges,
she raised the need for
more affordable energy to
encourage investors to set
up shop in the region.
For the second
panel, Department of Public Works and Highways
(DPWH) Secretary Manuel M. Bonoan, Department
of Transportation (DOTr)
Secretary Jaime J. Bautista, Department of Information and Communications Technology (DICT)
Secretary Ivan John E. Uy,
DOE Undersecretary Rowena Cristina L. Guevara,
Public-Private Partnership
(PPP) Center Executive
Director Ma. Cynthia C.
Hernandez, and Executive
Director and Deputy Chief
Finance Officer of ACEN
Corporation Juan Martin
L. Syquia discussed the
latest infrastructure programs in Luzon.
On energy security, Undersecretary
Guevara said that the
current share of RE in the
Philippines’ power mix is
currently at 22 percent.
To reach its targets, the
DOE implemented the renewable portfolio standard
(RPS) to ensure that distribution utilities and electric cooperatives increase
their RE share by 2.52
percent yearly beginning
September.
Finally, the third
panel discussed developments and emerging
opportunities in key economic sectors. Panelists were Department of
Trade and Industry (DTI)
Secretary Alfredo E. Pascual, Department of Labor
and Employment (DOLE)
Secretary Bienvenido E.
Laguesma, Department
of Tourism (DOT) Undersecretary Mae Elaine T.
Bathan, Department of Agriculture (DA) Undersecretary Mercedita A. Sombilla,
Department of the Interior
and Local Government
(DILG) Undersecretary
Marlo L. Iringan, and Chief
Executive Officer of Nueva Segovia Consortium of
Cooperatives (NSCC) Divina C. Quemi.
NSCC CEO Quemi expressed her gratitude
to the President for highlighting the importance of
supporting cooperatives
in his second State of the
Nation Address (SONA)
and his directive to amend
the Philippine Cooperative
Code.
The NSCC empowers cooperatives and
implements projects that
help eradicate poverty
through financial a
