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 Sur-Abra 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 to 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. Bareng-Asistin 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 assistance, training, and community development activities.

The PEB in Laoag was attended by more than 300 members of the business and financial communities, industry associations, local government units, non-government organizations, academe, and media.