Competitive Renewable Energy Zones (CREZ)
Competitive Renewable Energy Zones (CREZ) are designated geographic areas identified by the DOE as optimal locations for large-scale renewable energy development, with proactive transmission planning to match. The concept directs RE development to where indigenous resources are best and transmission can be built cost-effectively.
Purpose
CREZ addresses a core problem in RE deployment: generation projects can be built in one to two years, but transmission infrastructure takes approximately 10 years to plan and construct [PEP 2023-2050 Vol. I, p.18, 2023]. Without proactive transmission planning aligned to RE zones, RE projects become stranded capacities.
The CREZ vision: “adopt pro-active transmission planning and implementation, and direct RE development to places that optimize the use of indigenous resources and maximize the benefits to the people.” [PEP 2023-2050 Vol. I, p.18, 2023]
Enabling Policy
DOE Department Circular DC2018-09-0027 — “Establishment and Development of Competitive Renewable Energy Zones in the Country” — issued 18 September 2018 [NREP 2020-2040, p.11, 2022].
Status
- CREZ Phase 1: Concluded 2020. Report “Ready for Renewables — Grid Planning and Competitive Renewable Energy Zones (CREZ) in the Philippines” identified 25 CREZ with total potential of 152,097 MW in solar and wind [NREP 2020-2040, p.34, 2022]. Full breakdown by grid and technology [NREP 2020-2040, Table 9, p.34, 2022]:
| Grid | Solar PV (MW) | Wind (MW) | Geothermal (MW) | Hydro (MW) | Biomass (MW) |
|---|---|---|---|---|---|
| Luzon | 35,031 | 54,115 | 285 | 270,603 | 210 |
| Visayas | 11,876 | 25,429 | 40 | 1,917 | 71 |
| Mindanao | 11,203 | 14,443 | 40 | 382,514 | 93 |
| Total | 58,110 | 93,987 | 365 | 655,034 | 374 |
Note: Hydro potential (655 GW) is theoretical maximum including run-of-river sites with very low development probability. CREZ practical focus is solar/wind.
- CREZ Phase 2: Kicked off 27 January 2021 with three activities (DOE + NGCP + TransCo + ERC + USAID/NREL) [NREP 2020-2040, Table 11, p.38, 2022]:
- CREZ Implementation Support — pursue CREZ-related transmission projects identified in TDP
- Enhanced Load Modeling and Forecasting — comprehensive sectoral electricity demand projections
- Energy Storage Modeling — evaluate ESS deployment pathways and operational impacts on bulk power system
- Results of CREZ Phase 1 and 2 are being integrated into the Smart and Green Grid Plan (SGGP) [PEP 2023-2050 Vol. I, p.100, 2023]
- OSW areas to be designated as additional CREZ zones; see Offshore Wind (OSW)
Associated Transmission (Table 10)
The TDP 2021-2040 Consultation Draft identified associated transmission projects for all 25 CREZ. CREZ solar/wind development capacity with transmission: 15,944 MW PV / 18,702 MW wind across Luzon, Visayas, and Mindanao. Key Luzon projects include the Western Luzon 500 kV Backbone, Kabugao 500 kV Substation complex, and Luzon-Visayas HVDC Bipolar Operation. Key Mindanao projects include Lala-Naga-Zamboanga 230 kV T/L, Balo-I-Villanueva-Maramag 230 kV T/L, and Eastern Mindanao 230 kV T/L [NREP 2020-2040, Table 10, pp.37-38, 2022].
See Smart and Green Grid Plan (SGGP) for the SGGP blueprint that integrates CREZ outputs.
Connection to Transmission
CREZ is designed to work alongside NGCP’s Transmission Development Plan (TDP) . The DOE coordinates RE zone designation with NGCP’s transmission expansion to ensure infrastructure is in place before RE projects come online.
DOE concern: Since 2009, the transmission grid has increased by only 8% in total line length, with NGCP’s pre-pandemic expansion averaging only 1% per year. This pace is far below what is required to integrate large-scale VREs under the CES scenarios. Timely TDP implementation is flagged as a critical constraint [PEP 2023-2050 Vol. I, p.107, 2023].
Relationship to RE Targets
Achieving the 35% RE target by 2030 requires tripling installed RE capacity from 8.3 GW to ~26 GW. CREZ provides the spatial framework for where this capacity should be built to minimize transmission bottlenecks [PEP 2023-2050 Vol. I, p.16, 2023].
Under CES-1, VRE share (solar + wind) in generation rises to 35.3% by 2050 — a level at which real-time VRE output can ramp from 100% to 0% capacity instantaneously, requiring ESS (BESS + pump hydro) as ancillary services operating alongside the CREZ/SGGP grid infrastructure [PEP 2023-2050 Vol. I, p.101, 2023].