On March 16, 2025, a groundbreaking ceremony took place in Barangay Talisay, Daanbantayan, Cebu, marking the start of a 150-megawatt (MW) solar power farm project.
The P7.5-billion Daanbantayan Solar Power Plant began construction this week after its approval process was expedited by national and local authorities through the Marcos administration’s green lane initiative.
The event was led by Cebu Governor Gwendolyn Garcia and José Manuel Entrecanales y Domecq, President of Spain-based energy company Acciona Energia.
(Also read: Electrification to Reach 13K Households in Northern Iloilo)
More affordable electricity
Governor Garcia expressed her excitement for the project, highlighting its potential to provide more affordable electricity to residents. She noted that once the new solar power plant begins feeding energy into the National Grid Corporation of the Philippines (NGCP), consumers can look forward to lower electricity rates.
“Law of averages—once the cheaper energy enters the grid, the overall cost per kilowatt-hour paid by consumers will go down,” Garcia stated.
She further mentioned that this collaboration was designed to attract additional investments, stressing that reduced electricity costs would make Cebu a more attractive location for businesses.
Originally planned without storage, the solar farm will now include batteries to stabilize the power supply and minimize disruptions. Garcia explained that incorporating battery storage into the solar power plant would enable a continuous energy supply to the grid, even after sunset.
(Also read: Visayan Electric brings light to 26 homes in Naga, Cebu)
Public-Private Partnership (PPP) project
The solar power plant project is the country’s first public-private partnership (PPP) in the energy sector. The Cebu provincial government will offer a 187-hectare site, while Acciona will fund the development of the solar farm.
The local administration encountered difficulties securing land for the project, involving over 70 landowners. After successful negotiations, the government was able to acquire the necessary lots.
Located just a kilometer from the Talisay substation of the National Grid Corporation of the Philippines (NGCP), the land is expected to produce approximately 280 gigawatt-hours of clean energy each year, enough to provide power to 300,000 people. The project is also set to reduce carbon dioxide emissions by 259,000 tons each year.
The project will follow a build-operate-transfer (BOT) model, with Acciona funding, operating, and maintaining the plant. After construction, Acciona will manage the plant for 25 years to recoup its investment. Acciona will generate steady revenue for the government through land lease payments, a share of the plant’s earnings, and a percentage of electricity sales.
Garcia stated that the project’s infrastructure is built to endure typhoons and maintain a reliable power supply. Once operational, the electricity will be transmitted to the NGCP, and the Cebu Electric Cooperative (CEBECO) will handle its distribution.
More project benefits
The project is seen as a key solution to Cebu’s anticipated power shortage, driven by the province’s rapid growth and increasing energy needs.
The plant’s development is expected to create job opportunities in the municipality. Daanbantayan Mayor Sun Shimura said that the installation of solar panels will initially create jobs for 1,000 to 1,500 workers. Once operational, the plant will employ around 500 to 700 people.
In addition to generating power, the Daanbantayan Solar Power Project is anticipated to set a precedent for future public-private partnerships in renewable energy across the Philippines.
The solar farm is set to be completed and operational by December 2026.
Sources:
https://www.philstar.com/the-freeman/cebu-news/2025/03/17/2428961/cheap-power-soon
https://www.sunstar.com.ph/cebu/daanbantayan-moves-to-renewable-energy