The Cebu Provincial Government has officially signed a 25-year build-transfer-operate agreement with Consortium Acciona Energia Global and Freya Renewables Inc. for the construction of a 150-megawatt (MW) solar power plant.
The signing of the MOA was led by Gov. Gwendolyn Garcia, Vice Gov. Hilario Davide III, Ignacio Domecq of Spain-based Acciona Energia Global Ltd., and Fermin Alvarez of Makati-based Freya Renewables Inc. Among the witnesses present was Energy Secretary Raphael Lotilla.
Set to be constructed on a 185-hectare lot in Barangay Talisay in the northern town of Daanbantayan, Cebu’s latest solar farm will become one of the largest renewable energy facilities in the country. Partner Accionia Energia Global was previously involved in the construction of the Cebu-Cordova Link Expressway (CCLEX), the longest bridge in the Philippines spanning 8.9 kilometers.
This landmark deal comes several months after Gov. Garcia called for more power plants to be built for Cebu to attain power self-sufficiency.
Securing the Property
As stated in the MOA, the energy firms will bear the construction costs of the 150-MW solar power plant, while the Cebu Provincial Government will acquire the land and properties.
The Capitol has already secured the agreement of 24 lot owners in Brgy. Talisay, while negotiations with 26 other lot owners are still ongoing.
According to Daanbantayan Mayor Sun Shimura, the Provincial Government is purchasing the necessary properties at a fair price of Php 130 per square meter, with some owners owning more than two lots.
He said the LGU also already explained to the lot owners that the project aims to lower the cost of electricity significantly. On a previous occasion, the mayor addressed his constituents in the Fourth District, saying “As the father of the town, I would like to appeal to you. This is once in a lifetime nga opportunity sa atoang lungsod. Never in the Province of Cebu nga naay solar farm ingon ani ka dako, which makabenepisyo gyod ta.” (As the father of the town, I would like to appeal to you. This is a once-in-a-lifetime opportunity for our town. Never in the Province of Cebu has there been such a large solar farm, which will truly benefit us.)
Incentives for Barangay Stakeholders
Shimura also shared that the governor assured that lot owners who are willing to sell will be exempt from paying taxes, including capital gains, transfer tax, and documentary stamp tax. Additionally, they will be given priority in the hiring process once the facility opens.
He is confident that the completed facility will not only benefit Daanbantayan, but neighboring municipalities and the proposed economic zone in Bogo City as well. The solar power plant will undoubtedly spur economic development in the region.
However, the mayor added that if many property owners are hesitant to sell, the provincial government could resort to expropriation proceedings.
High Hopes
In his speech at the signing ceremony, DoE Secretary Lotilla said that the signing of the Memorandum of Agreement (MOA) between the Cebu provincial government and the two energy companies is a crucial step towards the country’s renewable energy goals, noting that Cebu is the center of the transmission grid of the country, connecting the Luzon, Visayas, and Mindanao grids.
In her speech, Governor Garcia said the involvement of the Capitol in the energy sector is essential in lowering the price of electricity. She continued to say civil works for the project would be completed in just a year and a half.
This is certainly a bright spot on the horizon for the Philippines. Once the expansive 150-MW solar power plant project is completed, Cebu’s reliance on power generation facilities from other regions will be reduced, ensuring a stable and uninterrupted power supply. Cebuanos can look forward to better power service, as well as lower electricity bills. And Filipinos will garner another renewable energy source that will benefit the entire country in the long run.