CEBU, Philippines — A symbolic gesture of partnership was highlighted as the first-ever local government unit (LGU)-led Public-Private Partnership (PPP) project and the largest solar power plant of its kind in Cebu broke ground yesterday, March 16, 2025, in Barangay Talisay, Daanbantayan, Northern Cebu.
A multi-billion-peso solar power plant is set to rise in the town of Daanbantayan through a PPP between the Cebu Provincial Government and the Spain-based energy firm Acciona Energia.
Cebu Governor Gwendolyn Garcia and Acciona Energia Global President José Manuel Entrecanales y Domecq spearheaded the groundbreaking ceremony for the 150-megawatt solar power plant.
In an interview with reporters yesterday, Governor Garcia said she is eager for the project to push through, as it aims to provide residents with more affordable electricity.
“I’m really doing this for the many, mga masa nga naglisod intawn karon, mahal kaayo ni atong kuryente,” said Garcia.
Governor Garcia said consumers can expect lower electricity rates once the new solar power plant begins supplying energy to the National Grid Corporation of the Philippines (NGCP).
She explained that solar power costs only P4.50 per kilowatt-hour, significantly cheaper than the current P12 to P15 per kilowatt-hour from coal-powered plants.
“Law of averages—once the cheaper energy enters the grid, the overall cost per kilowatt-hour paid by consumers will go down,” Garcia said.
She added that this partnership was initiated to attract more investments, emphasizing that lower electricity costs make Cebu a more appealing destination for businesses.
Garcia also explained that this solar power plant, equipped with battery storage, will be for Cebu Electric Cooperative II (CEBECO II), which covers the northern part of Cebu.
The integration of battery storage in a solar power plant will allow an extended energy supply to the grid even beyond daylight hours, resulting in lower electricity costs, Governor Garcia said.
She added that the battery system will also enhance grid stability by preventing power fluctuations, ensuring a more reliable energy supply for consumers.
Meanwhile, plans are also in place to build similar facilities in Dumanjug town for CEBECO I, which provides electricity to southern Cebu, and in Toledo City for CEBECO III, which serves the midwestern and central parts of Cebu.
Through this PPP, Acciona will finance the construction of the solar plant on a 187-hectare property owned by the Cebu Provincial Government.
In addition to constructing the facility, the Spain-based energy company will also partner with the provincial government in operating and maintaining the 150-megawatt photovoltaic power plant.
Notably, yesterday marked exactly one year since the Cebu Provincial Government signed a Memorandum of Agreement (MOA) with the Acciona Energia consortium.
The agreement includes the development, operation, and maintenance of the solar power facility in the town.
“Today is the beginning of a new era for Cebu, for this wonderful province, and for the Visayas. A new era powered by clean, affordable, and sustainable electricity,” said Acciona Southeast Asia Director Ignacio Domecq Carrion.
With construction set to begin, the project will follow a build-operate-transfer (BOT) scheme, in which Acciona will finance the development, operation, and maintenance of the plant.
Upon completion of construction, the private company will have the exclusive right to operate and maintain the power plant for 25 years, allowing it to recover its investment.
Since Acciona Energia is partnering with the Provincial Government, it will provide a steady revenue stream for the government over the next 25 years. This will come from the lease of the Capitol’s land property, a percentage of the plant’s total revenue, and a share of electricity sales revenue in the form of brokerage fees.
Carrion said that payments will be made annually. This is in addition to the taxes that will be paid to the Daanbantayan LGU.
After 25 years, full ownership of the facility will be transferred to the province.
Beyond its economic benefits, the project is also considered the most viable solution to Cebu’s looming power shortage in the coming years, as the province’s rapid development continues to drive higher energy demand.
The establishment of the plant is expected to generate employment opportunities in Daanbantayan while ensuring more affordable energy prices for its residents.
In an interview, Daanbantayan Mayor Sun Shimura stated that once work begins on installing the solar panels, the project is expected to generate jobs for at least 1,000 to 1,500 workers.
Once the solar panels are installed, the plant is expected to employ around 500 to 700 workers when it becomes operational.
“Dako na kaayo ni og tabang, so we are very happy for this,” said Shimura.
As part of the groundbreaking ceremony for the 150-megawatt solar power plant, a symbolic tree-planting activity was also held.
Governor Garcia, Vice Governor Hilario Davide III, Daanbantayan Mayor Shimura, and Provincial Board members represented the Philippines in a ceremonial Narra tree planting during the event.
Representing Spain, Entrecanales, along with other executives of the Spanish conglomerate and Spanish Ambassador to the Philippines Miguel Utray, planted a Kalamata olive tree.
Amy Wang, a representative of Power China, the project’s main contractor, also planted a Chinese bamboo tree.
The construction of the solar power plant with battery storage aligns with the Renewable Energy Act of 2008, which promotes the development and use of clean energy sources to reduce reliance on fossil fuels, decrease carbon emissions, and ensure long-term energy sustainability.
Beyond power generation, the Daanbantayan Solar Power Project is expected to serve as a model for future public-private renewable energy collaborations in the Philippines.
By incorporating solar energy into Cebu’s power supply, the project supports the province’s economic growth while reinforcing its commitment to sustainable development and climate change mitigation.
The project is scheduled for full mechanical completion by December 2026.
Entrecanales assured in an interview with reporters that Cebuanos will fully reap the benefits of the solar plant once it becomes operational next year.
Carrion, on the other hand, acknowledged that Daanbantayan is often affected by typhoons, especially in northern Cebu. However, he assured that the planned solar plant will be built to withstand such extreme weather conditions.
“The solar panels, with the help of Power China, our contractor, have been proven in many places before… it will be completely typhoon-proof,” said Carrion. — /ATO (FREEMAN)