Furniture maker taps daytime solar rates to cut power costs

CEBU, Philippines — COREnergy, the retail electricity supplier of Vivant Energy, has signed DEDON Manufacturing Inc. as the first customer of its new Sunshine Plan, betting that manufacturers with daytime-heavy operations will increasingly seek power contracts that link electricity costs to solar generation.

The two-year retail electricity supply agreement covers 0.55 megawatts of contracted capacity and gives DEDON, the Philippine manufacturing arm of German luxury outdoor furniture maker DEDON, a combination of stable daytime rates backed predominantly by solar generation and market-based pricing during non-solar hours.

The deal highlights a growing opportunity for electricity suppliers in the Philippines as manufacturers look to manage energy costs while responding to pressure to improve the sustainability of their operations.

For DEDON, the arrangement is particularly relevant because much of its production activity in Cebu takes place during daylight hours.

The Sunshine Plan is designed to match that consumption profile, allowing the company to tap relatively stable solar-backed rates during the day while using variable Wholesale Electricity Spot Market, or WESM, pricing during off-peak periods.

“There’s a growing segment of manufacturers whose operations are concentrated during the day, and we built this plan specifically for them,” Marko Sarmiento, vice president and head of operations at COREnergy, said in a statement.

Cebu manufacturing hub

DEDON’s decision also underscores Cebu’s role in the global supply chains of high-value manufacturing.

Founded in Germany in 1990, DEDON established its manufacturing operations in Cebu four years later, drawn in part by the island’s long-established pool of skilled weavers. Its Cebu facilities now produce handcrafted furniture for luxury residences, hotels, resorts, yachts and hospitality projects in more than 100 countries.

Electricity is a critical production input for the company, powering specialized equipment and quality-control systems while supporting the labor-intensive processes behind its signature woven furniture.

“For more than three decades, DEDON has been committed to creating world-class outdoor furniture through exceptional craftsmanship, innovation, and the dedication of our people in Cebu,” Rosy Grace Cabradilla, general director of DEDON Manufacturing, said.

She said the Sunshine Plan fits the company’s daytime operating profile while supporting its sustainability initiatives.

The agreement comes as Philippine manufacturers contend with electricity costs that can materially affect production economics and competitiveness.

For companies with predictable daytime demand, shifting more consumption toward solar-backed supply could provide a way to better align energy procurement with operating schedules.

Beyond conventional power supply

COREnergy’s Sunshine Plan represents a shift from conventional electricity supply arrangements by combining a more predictable daytime rate with exposure to wholesale market pricing outside solar-generation hours.

The model is intended to give businesses greater flexibility in managing electricity consumption rather than treating power as a uniform cost throughout the day.

For manufacturers, that distinction can be significant. Production schedules, equipment loads and operating hours can determine how much electricity a facility consumes and when it consumes it, creating opportunities to optimize procurement around those patterns.

DEDON has also pursued sustainability and materials innovation through initiatives including its EcoCycle Fiber, alongside proprietary fiber technologies and collaborations with international designers.

Its adoption of the Sunshine Plan adds energy procurement to that broader effort, while giving COREnergy a reference customer as it seeks to expand the product among Philippine manufacturers.

“DEDON’s adoption of the Sunshine Plan is an early signal of where we see this product going,” Sarmiento said. “We’re excited to bring this same value to more businesses across our manufacturing portfolio in the months ahead.” — (FREEMAN)