Holcim Philippines has signed a long-term power purchase agreement with Peak Energy to set up one of the largest behind-the-meter solar power projects in the country’s industrial sector. The move marks a major step in how energy-intensive industries in the Philippines are shifting toward cleaner and more reliable power sources while managing rising energy costs.

The project involves a total solar capacity of 25 megawatt-peak installed across two of Holcim’s cement manufacturing plants. The Bacnotan plant in La Union will have a 13 MWp solar system, while the Norzagaray facility in Bulacan will host a 12 MWp installation. Once fully operational, the solar plants are expected to generate around 40 gigawatt-hours of electricity every year. This clean power output will help cut Holcim’s carbon dioxide emissions by about 28,500 tonnes annually, which is roughly equal to removing 6,000 cars from the road.

Under the 20-year agreement, Peak Energy will handle the full scope of the project, including design, construction, ownership, and long-term operation and maintenance of the solar assets. Peak Energy is backed by Stonepeak Infrastructure Partners, a global investment firm focused on infrastructure and real assets. This arrangement allows Holcim to use solar power without making any upfront investment. Instead, the company will purchase electricity at a fixed and predictable rate, helping reduce exposure to fluctuating grid power prices and lowering overall energy costs.

Peak Energy CEO Gavin Adda said the project shows how clean energy has become a practical business solution rather than just a sustainability target. According to him, installing renewable energy directly at industrial sites helps companies improve price stability and strengthen operational resilience, while also cutting emissions. He added that the model can be easily replicated by other large manufacturers in the region.

For Holcim Philippines, the agreement supports the company’s broader global goal of achieving net-zero emissions. Saeed Ola Ande, Head of Supply Chain at Holcim Philippines, said the project aligns with the company’s commitment to sustainable manufacturing while ensuring its cement operations remain competitive in a challenging energy environment.

The partnership comes at a time when the Philippines is facing energy supply risks, high electricity prices, and growing pressure to reduce carbon emissions. By combining long-term cost savings with clear environmental benefits, the Holcim–Peak Energy project highlights how large industrial players can adopt renewable energy at scale without disrupting core operations. It also sets a strong example for other manufacturers looking to balance growth, cost control, and sustainability.

Subscribe to get the latest posts sent to your email.

Type your email…

Subscribe