Makati City has secured a full transition of its government power consumption to renewable energy after signing a nine-year supply agreement with ACEN Corporation, a move that positions it as the first local government unit in the Philippines formally recognized by the Energy Regulatory Commission (ERC) for 100% renewable energy utilization.

The ERC recognition was conferred on March 19 by Chairperson and CEO Atty. Francis Saturnino C. Juan during the signing of the Renewable Energy Supply Agreement covering all city government facilities.

 “This initiative reflects how we envision Makati: a city powered by clean energy – fueling our public transport, energizing our businesses and households, and supporting our schools, hospitals, and public spaces,” Mayor Nancy Binay said. “It is a vision that aligns with the goals of the United Nations Sustainable Development Agenda, and one that we are proud to actively pursue.”

Under the agreement, 154 city government facilities, including the New Makati City Hall, Ospital ng Makati, and the University of Makati, will transition from conventional electricity supply to 100% renewable energy sourced from ACEN’s solar, wind, and geothermal portfolio. The contracted load covers nearly 10 megawatts.

The mayor said the arrangement also provides a hedge against volatility in global energy markets, which continues to influence electricity pricing.

“At a time when global uncertainties, including ongoing conflicts in the Middle East, continue to put pressure on power prices, this partnership is both timely and strategic. It strengthens our energy security while reducing the impact of rising costs of electricity on the city’s resources,” Binay said.

The city government expects to save about PHP 300 million over the nine-year contract period, supported by a guaranteed discount on prevailing generation charges.

“This is how we want to govern. Clean energy powering our buildings, that same energy powering our electric vehicles, and savings going back to public services. That is what a circular economy looks like in practice, and Makati will be the proof of concept,” she said.

Over the life of the agreement, the shift is projected to prevent approximately 289,885 metric tons of carbon emissions, equivalent to removing about 62,000 vehicles from the road or avoiding the consumption of 108 million liters of diesel.

The city also said it hopes the model will encourage replication among other local government units in the Philippines and across Southeast Asia.

“If the most urbanized, most densely populated financial district in the country can run on renewable energy, then other cities will also be inspired to try,” Binay said.

As part of the deal, ACEN will install 19 electric vehicle charging stations across city facilities at no cost to the local government. These stations will be powered by the same renewable energy supply and will support Makati’s growing fleet of e-jeepneys, e-buses, and e-shuttles.

Will Makati’s 100% renewable energy shift under RCOA and RAP become a scalable model for other LGUs, or remain an outlier driven by fiscal and institutional capacity?

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