Construction is underway on a 4-megawatt solar facility in Barangay Liong, Guinsiliban, marking a dual milestone: it is the first solar power plant on the island of Camiguin and the first renewable-energy facility in the Philippines to be fully compliant under the Embedded Generation Facility–Lease-to-Own (EGF–LTO) framework. Developed by Camigreen Inc., the plant is set to supply daytime embedded generation to the Camiguin Electric Cooperative (CAMELCO), reducing reliance on diesel and imported power.

The project broke ground in November 2025 and set for commercial operation in the first quarter of 2026. The 4 MWp plant will stabilize CAMELCO’s voltage supply and help lower electricity costs for local consumers. The lease-to-own structure gradually converts electricity payments into equity, providing a replicable model for other electric cooperatives seeking embedded-generation solutions.

“After more than five years of preparatory work, including permitting, feasibility studies, system-impact analyses, and land preparation, we are proud to see this project come to life,” the company said in a statement. “This stands as a practical demonstration of how regulatory and policy innovations can make renewable energy commercially viable while creating a strategic asset for the distribution utility.”

The project addresses long-standing challenges in small, island grids, where electricity costs remain high and supply is often unstable. By adopting a new contracting model validated by the National Electrification Administration (NEA) and the Department of Energy (DOE), the project unlocks private investment for renewables in areas where traditional approaches have struggled.

The EGF-LTO framework requires full alignment with the DOE, NEA, and Energy Regulatory Commission (ERC) rules, innovative lease-to-own contracting, and active engagement from cooperatives—a combination of factors that has limited adoption until now.

CAMELCO and local government units have been proactive partners, ensuring regulatory compliance and alignment with current legal frameworks. “Our collaboration with DOE, NEA, and ERC has been critical in ensuring full compliance and aligning this model with the current legal and regulatory frameworks,” Camigreen said.

How do you think models like the Embedded Generation Facility–Lease-to-Own framework can change investment and development strategies for small-grid renewable energy in the Philippines?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.