ILOILO — A Singapore-based subsidiary of German renewable energy developer ib vogt has broken ground on a 99-megawatt solar power facility in Ajuy, Iloilo. The Luca Solar Power Plant marks a major investment in the province's clean energy future and is expected to deliver significant economic and environmental benefits to the region.
A Major Boost for Iloilo's Energy Security
The Luca installation, once operational, is expected to generate approximately 158 gigawatt-hours of electricity annually. This is enough to power around 79,000 households while avoiding an estimated 109,000 tons of carbon dioxide emissions per year. The project will connect to the National Grid Corporation of the Philippines' 138-kilovolt Barotac Viejo Substation, strengthening the Visayas grid.
For Iloilo, this means a more reliable and sustainable energy supply. As the province's economy continues to grow, the demand for power will rise. The Luca plant will help meet that demand while reducing dependence on fossil fuels, contributing to a cleaner and more resilient energy system.
Local Jobs and Economic Activity
The project is expected to create hundreds of local jobs during the construction phase. A smaller number of skilled positions will be available for the life of the plant, which has a projected operational period of 20 years. Ajuy Mayor Loida Espinosa noted that the development will bring employment, economic activity, investments, and other benefits to Barangay Luca and the entire municipality.
The influx of workers and investment will stimulate local businesses, from food suppliers to transport services. The plant's long-term presence also promises a steady source of livelihood for skilled workers in the community. This aligns with the province's goal of inclusive growth, where economic progress reaches even the smallest barangays.
A Milestone for Renewable Energy in the Philippines
The Luca project is part of ib vogt APAC's broader push to reach around 500 megawatts of capacity in operation and construction in the Philippines by the end of 2026. It follows the company's first solar-and-storage plant in the country, which began delivering power earlier this year. A third and larger project is slated to enter construction before year-end.
David Ludwig, CEO of ib vogt APAC, described the groundbreaking as a turning point. He emphasized that reliable, low-cost power will be a decisive factor in how fast Southeast Asian economies grow over the next decade. The Philippines, he said, is a priority market for the company.
International Partnerships Drive the Project
The project has attracted significant international support. British Ambassador Sarah Hulton OBE said the UK government is proud to support the Luca Solar Project through British International Investment, the UK's development finance institution. The investment will help deliver clean electricity to tens of thousands of households and strengthen energy security in the Visayas.
The project is also backed by a PHP 4.5-billion financing facility from Rizal Commercial Banking Corporation, with Pentagreen Capital and British International Investment providing additional support. This blend of local and international financing underscores the confidence in the project's viability and its importance to the Philippines' climate goals.
A Sustainable Future for Iloilo
The Luca Solar Power Plant represents more than just a new source of electricity. It symbolizes Iloilo's commitment to sustainable development and its role in the national transition to a lower-carbon future. By harnessing the power of the sun, the province is protecting its environment while powering its progress.
For the people of Ajuy and the wider Iloilo community, the project brings hope for a brighter, greener tomorrow. It is a clear demonstration that economic growth and environmental stewardship can go hand in hand.
