By Maria Elena Catajan and Sherwin De Vera
As the global shift to renewable energy accelerates, Cordillera communities grapple with balancing sustainable development while upholding indigenous peoples’ rights and protecting their territories.
The government envisions the Cordillera as the “renewable energy powerhouse of Northern Luzon,” aiming to address high electricity rates and low social acceptability concerns. The Cordillera Renewable Energy Master Plan 2024-2023 seeks to harness an estimated potential of 8,253.96 MW, primarily from hydropower.
However, renewable energy advocates question this framework, emphasizing the need for inclusive development, particularly in indigenous peoples’ territories.
Nic Satur Jr., chief advocate officer for Partners for Affordable and Reliable Energy (PARE), stressed the importance of consulting communities about their energy needs rather than prioritizing the power demands of Metro Manila.
“The government is always mentioning the Cordilleras for hydropower and Bataan for the Nuclear Power Plant. But the question is, are the residents included in the same statement as the government?” he asked.
He emphasized that consultation with affected communities should come first before pursuing energy projects that could significantly impact the socio-economic conditions of the area.
“Sure enough, it may solve the problem of NCR when it comes to power supply, but they also need to understand the situation that will happen in grassroots communities,” Satur added.
He cited the failed mini-hydro project in Kabayan, Benguet, where the community called for a halt to the FPIC process for three proposed hydroelectric plants due to irregularities.
Renewable energy in the Cordillera
The Cordillera’s renewable energy potential heavily relies on its abundant watersheds and river basins, making hydropower a leading alternative energy source. This has drawn multinational companies to invest in the region.
Currently, the SN Aboitiz Power (SNAP) Group operates several hydro plants through privatization. These include the Magat hydro plant, with a 360 MW nameplate capacity; the Binga hydro plant, uprated from 100 MW to 140 MW; and the Ambuklao plant, uprated from 75 MW to 112.5 MW.
In 2024, the Magat, Binga, and Ambuklao hydroelectric power plants (HEPPs) sold an average of 126 MW of energy and 47 MW of ancillary services (AS) in the spot energy and reserves market. AS, critical for grid stability, includes Regulating, Contingency, Dispatchable, Reactive Power Support (RPS), and Black Start Services, all of which SNAP’s plants are certified to provide. SNAP also provides firm AS through a Procurement Agreement with the National Grid Corporation of the Philippines (NGCP) and sells energy to Contestable Customers, Retail Suppliers, and Distribution Utilities.
SNAP is also studying the feasibility of the Alimit complex in Ifugao province, consisting of the 120-MW Alimit hydro and the 20-MW Olilicon hydro. This project is being explored for multipurpose use, including irrigation, in collaboration with the National Irrigation Administration (NIA).
Hydropower and alternatives
A recent study by Rosalina Palanca-Tan of Ateneo de Manila University highlighted solar energy as the renewable energy source with the highest potential to replace fossil fuels in electricity generation. Rooftop solar power (RTSP) presents several advantages: decentralized, people-driven adoption for rapid deployment, reduced transmission loads, zero impact on land and ecosystems, and broad public participation in the clean energy transition (Vetter, 2021). Joshi et al. (2021) calculated that covering all rooftops globally with solar PV panels could generate 27 petawatt hours of electricity annually—more than the total global electricity consumption in 2018.
The Institute for Climate and Sustainable Cities (ICSC) identifies the biggest hurdle for Cordillera as limited access to transmission lines in remote areas, restricting large-scale solar and wind energy projects.
Despite this, the lack of transmission infrastructure does not prevent community-led projects, such as those undertaken by the CDPC in Kalinga, which provide lighting and water solutions for local communities.
The ICSC noted that focusing on community-led projects allows the Cordillera to advance renewable energy deployment, improve energy access, enhance energy security, and support sustainable development. This approach also empowers local communities by involving them in the planning and implementation of energy solutions.
While hydropower projects offer long-term energy generation, they require significant capital investment for constructing dams, reservoirs, and turbine systems. Large-scale projects also necessitate thorough environmental impact assessments, meticulous site preparation, and extended construction periods, all contributing to high costs.
In contrast, wind and solar energy installations—particularly smaller-scale projects—generally demand lower initial capital. This cost disparity makes hydropower a more financially demanding option compared to its renewable counterparts.
Ultimately, the transition to a sustainable energy future requires a holistic approach that considers economic viability alongside environmental and social impacts. Investing in a diverse mix of renewable energy sources, coupled with strategic infrastructure development and technological innovation, is crucial to building a resilient and sustainable energy system that meets the demands of the future while addressing climate change.
Electric cooperatives’ solution
Benguet Electric Cooperative (BENECO) General Manager Melchor Licoben confirmed that the establishment of a one-megawatt solar farm in Barangay Tabaan Norte, Tuba, Benguet, is pushing through, with hopes of starting construction soon.
Licoben explained that the initial plans for the Tuba solar farm stalled after a failed bidding process under the European Union, which was further complicated by the pandemic. This left BENECO with a seven-hectare lot but no funding for the intended solar farm.
In 2018, BENECO was among seven electric cooperatives selected for an EU solar project grant aimed at transitioning Northern Luzon’s energy sector to renewables and mitigating climate change’s adverse impacts.
Today, the solar farm in Tabaan Norte is seen as a potential income-generating project for the cooperative, which plans to expand its renewable energy initiatives to offer cheaper power rates in Baguio and Benguet.
BENECO has also begun commercial operations of its 3.4 MW hydroelectric power plant in Buguias, Benguet—the cooperative’s first electric generation project.
Licoben stated that BENECO aims to develop larger renewable power projects and venture into hybrid models that combine solar and hydroelectric components.
With its Certificate of Compliance (COC) for hydro plant operations, BENECO is entitled to tax exemptions on carbon credits, special tax rates on equipment and machinery, income tax holidays, and duty-free importation of renewable energy materials.
The future of renewable in Cordillera
While the government acknowledges that large hydropower projects in the Cordillera face significant resistance, it continues to promote hydropower as the best and most viable renewable energy source in the region.
The government also recommends micro-grid systems for off-grid areas, as they are more viable for the Cordillera’s rugged topography and dispersed settlement patterns compared to traditional power distribution lines.
While large-scale projects contribute significant capacity, local community-led initiatives—from NGO-driven efforts in Kalinga to BENECO’s projects to reduce power rates—demonstrate the effectiveness of a multi-sectoral approach.
Successfully navigating the challenges of climate change and evolving energy demands while upholding indigenous peoples’ rights requires investment in community-based renewable energy projects and empowering local communities to manage them.#
Cordillera’s Hydropower House and Community-Driven RE
By Maria Elena Catajan and Sherwin De Vera
As the global shift to renewable energy accelerates, Cordillera communities grapple with balancing sustainable development and the preservation of Indigenous Peoples’ (IPs) rights.
Nic Satur, Jr., chief advocate officer for Partners for Affordable and Reliable Energy (PARE), addresses the government’s pronouncements on communities identified as suitable for Renewable Energy (RE) initiatives.
Satur stated, “The government is always mentioning the Cordilleras for hydropower and Bataan for the Nuclear Power Plant. But the question is, are the residents included in the same statement as the government? Before the government interferes with the lives of the IPs by creating power plants, by creating hydro, by opening up a nuclear power plant, they should at least have a public consultation or at least discuss it with the community because there is a huge socio-economic impact to the community. Sure, enough it may solve the problem of NCR when it comes to power supply, but they need to understand also the situation that will happen in the grassroots communities.”
Satur cites a recent mini-hydro project in Kabayan, Benguet, where proponents failed to secure public consultation, pushing Indigenous Peoples (IPs) to demand a halt to the Free, Prior, and Informed Consent (FPIC) process for three proposed hydroelectric power plants (HEPPs) on their ancestral land, pointing to irregularities in the process.
RE in the Cordillera
The RE potential of the Cordillera is heavily reliant on the abundance of watersheds and river basins, making hydropower a leading alternative energy source, drawing multinational companies to the region to invest.
Currently operating, via privatization under the SN Aboitiz Power (SNAP) Group, are the Magat hydro plant with a 360 MW nameplate capacity, the Binga hydro plant, which has been uprated from 100 MW to 140 MW, and the Ambuklao plant, uprated from 75 MW to 112.5 MW.
In 2024, Magat, Binga, and Ambuklao hydroelectric power plants (HEPPs) sold an average of 126 MW of energy and 47 MW of ancillary services (AS) in the spot energy and reserves market. AS, critical for grid stability, include Regulating, Contingency, Dispatchable, Reactive Power Support (RPS), and Black Start Services, all of which SNAP’s plants are certified to provide. In addition to the Wholesale Electricity Spot Market (WESM) and Reserves Market, SNAP also provides firm AS through a Procurement Agreement with the National Grid Corporation of the Philippines (NGCP) and sells energy to Contestable Customers, Retail Suppliers, and Distribution Utilities.
SNAP shares that another project in the feasibility stage is the Alimit complex in Ifugao province, consisting of the 120-MW Alimit hydro and the 20-MW Olilicon hydro, being studied for multipurpose use, including irrigation, in collaboration with the National Irrigation Administration (NIA).
Aside from the Wholesale Electricity Spot Market (WESM) and the Reserves Market for Ancillary Services (AS), SNAP also provides firm AS through a Procurement Agreement with the National Grid Corporation of the Philippines (NGCP). It also sells a portion of its generation for energy supply to Contestable Customers, Retail Suppliers, and Distribution Utilities.
Hydropower and alternatives
In a recent study by Rosalina Palanca-Tan of the Ateneo de Manila University, it is revealed solar energy is said to be the RE type that has the highest potential to replace fossil fuels in electricity generation. Rooftop solar power (RTSP) offers even more advantages, namely, (1) decentralized peopledriven uptake and hence quick deployment, (2) reduced transmission loads due to decentralized electricity supply, (3) zero impact on land and ecosystems as the solar panels are installed on existing houses and buildings, and (4) broad participation of the people in the clean energy transition (Vetter, 2021). Joshi et al. (2021) calculated that covering the entire 0.2 million km2 surface area of all rooftops in the world with solar PV panels could theoretically generate 27 petawatt hours of electricity annually which is even more than the combined electricity consumption of the world in 2018.
The Institute for Climate and Sustainable Cities (ICSC) says the biggest hurdle for the Cordillera is access to transmission lines in the remote areas, which ultimately limits potential for large-scale solar and wind energy projects.
While the lack of transmission lines hinders large-scale projects for solar and wind, it does not limit community-led projects like the endeavors of the CDPC in Kalinga, which help the community with lighting and water needs. (See links to related stories)
The ICSC stated, “By focusing on community-led projects, the Cordillera can still achieve significant renewable energy deployment, improving energy access, enhancing energy security, and supporting sustainable development. This approach not only addresses the region’s unique challenges but also empowers local communities by involving them in the planning and implementation of energy solutions.”
The ICSC relayed that while hydropower projects offer long-term energy generation, they require sizeable capital investment for the construction of large-scale infrastructure, including dams, reservoirs, and turbine systems.
Large-scale projects also require thorough environmental impact assessments, meticulous site preparation, and extended construction periods, which contribute significantly to the overall cost.
In contrast, wind and solar energy installations, particularly smaller-scale projects, generally demand less initial capital. This disparity in upfront costs makes hydropower a more financially demanding option compared to its renewable counterparts.
Ultimately, the transition to a sustainable energy future requires a holistic perspective that considers not only economic viability but also environmental and social impacts. Investing in a diverse mix of renewable energy sources, coupled with strategic infrastructure development and technological innovation, is essential for building a resilient and sustainable energy system that can withstand the challenges of climate change and meet the growing energy demands of the future.
Electric Cooperatives’ RE Solution
Benguet Electric Cooperative (Beneco) General Manager, Melchor Licoben, said the establishment of a one-megawatt solar farm in Barangay Tabaan Norte, Tuba, Benguet, is pushing through and hopes to start construction soon.
Licoben stated that the initial plans for the Tuba solar farm fell through after a failure in bidding was faced by the European Union, which was compounded by the pandemic in the following years, leaving Beneco with a seven-hectare lot without funding for the intended solar farm.
In 2018, Beneco was chosen with seven electric cooperatives in the country to become recipients of a solar project grant from the EU, aiming to transition Northern Luzon’s energy sector towards renewables, mitigating climate change’s projected adverse impacts.
Today, the solar farm in Tabaan Norte is seen to be a possible income-generating project for the cooperative, which plans to increase its RE projects in a bid to offer cheaper power rates in Baguio and Benguet.
Beneco also started commercial operation of its 3.4 megawatts (MW) hydroelectric power plant in Buguias, Benguet, noted to be the first electric generation project of the cooperative.
Licoben said Beneco is now aiming to develop bigger renewable power generation projects and venture into hybrid projects mixing a solar component to the existing hydro project.
Beneco, with the acquisition of a COC for the operation of the hydro plant, is entitled to tax exemptions on carbon credits, special tax rates on equipment and machinery, income tax holidays, and duty-free importation of renewable energy machinery, equipment, and materials.
The Future in RE
The success of the Cordillera’s renewable energy transition hinges on empowering communities.
While large-scale projects bring significant capacity, it is the community-led initiatives, from the NGO-driven projects of Kalinga to Beneco’s forward-moving ventures to lessen power rates, that exemplify the power of a multi-sectoral approach.
The Cordillera continually navigate the challenges of climate change and evolving energy demands, coupled with the need to uphold IP rights to land.
𝙍𝙚𝙥𝙤𝙧𝙩𝙞𝙣𝙜 𝙛𝙤𝙧 𝙩𝙝𝙞𝙨 𝙨𝙩𝙤𝙧𝙮 𝙬𝙖𝙨 𝙨𝙪𝙥𝙥𝙤𝙧𝙩𝙚𝙙 𝙗𝙮 𝙩𝙝𝙚 𝙄𝙣𝙨𝙩𝙞𝙩𝙪𝙩𝙚 𝙛𝙤𝙧 𝘾𝙡𝙞𝙢𝙖𝙩𝙚 𝙖𝙣𝙙 𝙎𝙪𝙨𝙩𝙖𝙞𝙣𝙖𝙗𝙡𝙚 𝘾𝙞𝙩𝙞𝙚𝙨 𝙪𝙣𝙙𝙚𝙧 𝙩𝙝𝙚 𝙅𝙖𝙞𝙢𝙚 𝙀𝙨𝙥𝙞𝙣𝙖 𝙆𝙡𝙞𝙢𝙖 𝘾𝙤𝙧𝙧𝙚𝙨𝙥𝙤𝙣𝙙𝙚𝙣𝙩𝙨 𝙁𝙚𝙡𝙡𝙤𝙬𝙨𝙝𝙞𝙥., 𝙚𝙙𝙞𝙩𝙚𝙙 𝙗𝙮 𝙁𝙧𝙖𝙣𝙠 𝘾𝙞𝙢𝙖𝙩𝙪.
