Holcim Philippines has signed a long-term power supply agreement with Peak Energy to install a large onsite solar system at two of its cement plants. This will allow the company to generate clean electricity directly within its facilities without sourcing directly from the grid.

The project includes a 25 megawatt-peak (MWp) total solar installation that will be deployed at Holcim’s manufacturing plants. One at Bacnotan, La Union with 13 MWp and another at Norzagaray, Bulacan with 12 MWp. 

Once construction is completed, the system is estimated to generate around 40 gigawatt-hours (GWh) of electricity annually and reduce carbon dioxide emissions by about 28,500 metric tons per year, which is roughly equivalent to removing 6,000 cars from the road.

The solar facilities will be installed as a behind-the-meter project. This means the solar panels are located directly within Holcim’s plant sites and the electricity they produce is then immediately plugged into the facilities. By consuming power onsite, companies can reduce their reliance on grid electricity and gain greater control over their energy costs.

The project will be delivered under a 20-year power purchase agreement (PPA). Under this contract, Holcim will buy the electricity produced by the solar systems over the contract period. Peak Energy, on the other hand, will handle designing, building, owning, and maintaining the facilities. The structure also allows Holcim to access renewable power without any upfront investment.

Peak Energy will be in charge of the long-term operations and maintenance of the solar installations, which enables Holcim to integrate renewable energy into its industrial operations without disrupting their cement production schedules.

Peak Energy Chief Executive Officer Gavin Adda said the project is a milestone for industrial renewable energy deployment in the country.

“This project represents a breakthrough not just for Peak Energy, but for the renewable energy and sustainable construction sectors in the Philippines,” Adda said. “Combined, this project is the largest behind-the-meter industrial solar deployment in the country to date. Holcim’s leadership in advancing this type of solution sends a clear signal: clean power is now a strategic asset for industry leaders who wish to get long-term visibility, price stability and cost saving from their energy procurement strategies.”

Holcim Philippines Senior Vice President and Head of Supply Chain Saeed Ola Ande said the partnership also supports the company’s move toward greener and more stable operations.

“This partnership with Peak Energy strengthens our shift toward cleaner and more resilient operations. By integrating solar power into our La Union and Bulacan plants, we are reducing our carbon footprint while supporting our Net Zero ambition and sustainable manufacturing in the Philippines,” Ande said.

As more industrial companies face rising power costs and carbon constraints, will behind-the-meter solar projects and long-term PPAs become a standard approach for managing energy needs in the Philippine manufacturing sector?

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