LGU endorsement delays stall RE projects in Iloilo

By Rjay Zuriaga Castor

The Department of Energy (DOE) has flagged the lack of endorsements from local government units (LGUs) as a major roadblock in the implementation of renewable energy (RE) infrastructure projects in Iloilo.

Lourdes Arciaga, head of DOE-Visayas Energy Resource Development and Utilization Division, said LGU endorsements remain the biggest challenge in the pre-development permitting process.

“We have a lot of projects that are delayed. There is big potential, the funds are there, there are investors […] One of our challenges is the LGU endorsements. I emphasize, it’s a challenge,” she said during the Conversations on Energy Transition Media Kapihan on August 21.

Arciaga stressed that endorsement challenges are especially evident in RE projects that cut across several municipalities.

“If it’s on schedule, smooth, and there’s no delay, in 10 years’ time, we’ll see some wind turbines. It’s either in the mountains or onshore,” she added.

She emphasized that under existing rules, energy resource developers and power producers are mandated to provide host LGUs with benefits equivalent to PHP0.01 per kilowatt-hour of electricity sales.

These funds, she noted, can be used by host LGUs for electrification projects, livelihood programs, reforestation, watershed management, health, and environmental initiatives within host communities.

Arciaga also said host LGUs receive a share of the national wealth and may benefit from broader incentives under the Renewable Energy Act, including tax perks for developers and manufacturers and government support for RE commercialization.

The DOE official added that changes in LGU leadership are among the reasons why previously approved projects have stalled.

Global Wind Energy Council Senior Policy Officer Pope John Sotto emphasized Iloilo’s strong potential for wind power.

He said Iloilo has roughly 80 onshore and 20 offshore wind projects, with an estimated total potential capacity of 7 gigawatts.

As of December 2024, the DOE reported that Iloilo has been awarded 1,390 megawatts (MW) of potential capacity through offshore wind service contracts.

These include the 990-MW East Panay Offshore Wind Project in Sicogon, Carles, spanning Iloilo and Negros Islands; a 100-MW offshore wind project in Concepcion; a 100-MW Iloilo Strait Wind Project between Iloilo and Guimaras; and the Guimbal Wind Project in southern Iloilo.

Meanwhile, an indicative capacity of 2,722 MW has been awarded for onshore wind projects in the province.

This includes ongoing developments such as a 200-MW offshore facility and 152 MW across the mountainous areas of Alimodian, Leon, Maasin, Tubungan, Igbaras, San Miguel, and Tigbauan.