DMCI Power Corporation is strengthening the hybridization of its off-grid generation portfolio as it integrates renewable energy into its island-grid operations, citing both system reliability requirements and exposure to imported fuel costs.

The company said renewables are expected to play a growing role in its off-grid portfolio following the commissioning of its first wind project in Semirara Island, Antique.

“With the commissioning of our first wind project, we expect renewables to play a larger role in our off-grid portfolio, particularly in the underserved and unserved communities across the country,” DMCI Power president Antonino E. Gatdula Jr. said at the DMCI Holdings 2026 Annual Stockholders’ Meeting on May 12.

DMCI Power operates in island and missionary grids where diesel and bunker fuel remain the primary sources of generation, making it highly exposed to imported fuel price volatility.

The company said its approach is to gradually integrate renewable energy into its existing generation mix rather than immediately replace conventional capacity.

“Our aim is to significantly reduce dependence on the imported and most expensive fuel by integrating renewables hybrid systems in our portfolio,” Gatdula said.

He emphasized that system requirements in off-grid areas remain anchored on reliability and affordability despite the ongoing integration of renewables.

“In off-grid areas, adequacy, reliability, and affordability remain the priority,” he said.

The company’s renewable integration began with the commissioning of a 12.5-megawatt wind project in Antique in 2025, marking its first wind facility and initial entry into non-thermal generation within its off-grid operations.

“In June 2025, we also commenced commercial operations of the 12.5 MW Semirara Wind Project in Antique, marking the DMCI Group’s first renewable energy plant,” Gatdula said.

While still a small portion of its overall capacity base, the wind project represents an initial layer of hybridization in DMCI Power’s off-grid systems, which remain largely dependent on imported fuel-based generation.

The company also outlined continued capacity expansion across its island-grid operations, including new builds in Masbate, Palawan, and planned entry into Occidental Mindoro.

Following the commissioning of an 8.8-megawatt plant in Masbate in March 2026, DMCI Power said it expects further additions within the year.

“We expect to bring around 44 MW of additional capacity online within the year,” Gatdula added.

He also confirmed the development of a 17-megawatt bunker-fired plant in Occidental Mindoro, targeted for commercial operation in 2027.

At the group level, DMCI Holdings chairman and president Isidro A. Consunji highlighted continued uncertainty in energy markets, citing geopolitical developments as a factor affecting fuel costs.

“Looking ahead, conditions will likely remain uneven, particularly with the recent developments in the Middle East affecting our fuel costs and the broader economy,” he said. “We remain confident in the Group’s ability to navigate the periods ahead as we build on our position.”

Does DMCI Power’s incremental hybridization model represent the most practical pathway for Philippine off-grid systems—or will fuel dependency remain structurally dominant despite renewable integration?

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