Holcim Philippines Inc., the local unit of the Swiss building materials giant, has entered into a 20-year power purchase agreement with Singapore-based Peak Energy to develop one of the largest “behind-the-meter” solar projects in the Philippines.

Under the terms of the agreement, Holcim said Peak Energy will deploy a 25-megawatt-peak solar installation designed to supply renewable power directly to its primary manufacturing hubs.

The capacity will be split between two key locations, with 13 MWp allocated to the cement maker’s plant in Bacnotan, La Union, and 12 MWp designated for its facility in Norzagaray, Bulacan.

By generating electricity on-site, Holcim can bypass certain grid-related charges, effectively insulating its operations from the volatility of the Philippine wholesale electricity market.

The solar systems are projected to generate approximately 40 gigawatt-hours of clean electricity annually once fully operational. This transition is expected to reduce Holcim’s carbon emissions by roughly 28,500 tons per year, a figure the company likens to removing 6,000 internal combustion vehicles from local roads.

The initiative aligns with the broader "Net Zero" ambition of the Holcim Group, which has been pivoting toward sustainable construction materials and greener production processes globally.

Gavin Adda, chief executive officer of Peak Energy, described the project as a landmark for the Philippine industrial sector. Adda noted that the scale of the deployment demonstrates that clean power has evolved into a strategic asset for industry leaders seeking long-term price visibility and cost savings.

For Peak Energy, the deal expands its footprint in the Asia-Pacific region, where it currently manages more than 300 MW of operating assets and has a development pipeline exceeding 1 GW.

Saeed Ola Ande, Holcim Philippines’ senior vice president and head of supply chain, said the partnership strengthens the company’s operational resilience. By integrating solar power into its two largest plants, the firm aims to balance its energy portfolio against rising fuel costs and regulatory pressure to lower the carbon intensity of cement production.

The project represents a growing trend among Philippine heavy industries to secure independent, renewable energy sources to mitigate the country’s notoriously high electricity rates. (Gabriell Christel Galang)