Embedded Solar Gains Momentum Across PH

The Philippines' transition toward a more resilient and sustainable energy system received another boost this week as Citicore Renewable Energy Corporation (CREC) secured a ₱4.05 billion project finance facility from LANDBANK to support the development of two embedded solar power plants in Central Luzon.

Power, generated closer to where it is needed. Embedded solar power plants paired with battery energy storage systems represent a new approach to strengthening the Philippine energy landscape by reducing transmission losses, easing pressure on the national grid, and improving the reliability of electricity for local communities. [Illustrator: ASK]

Beyond the financing itself, the project underscores a growing shift in how renewable energy can be deployed closer to where electricity is actually consumed.

The financing will support the construction of two 41-megawatt-peak solar facilities, each paired with battery energy storage systems, in Pampanga and Nueva Ecija through Citicore Solar Embedded, Inc.

Once completed, the projects will contribute a combined 82 MWp of solar capacity and 106 MWh of battery storage.

CREC has partnered with Pampanga I Electric Cooperative and the San Jose City Electric Cooperative to integrate the facilities directly into their respective distribution networks.

Unlike conventional power plants that transmit electricity over long distances through the national transmission grid, embedded solar facilities connect directly to local distribution utilities.

By generating electricity much closer to homes, businesses, and industries, these projects can reduce transmission losses, improve operational efficiency, and lessen dependence on heavily loaded transmission corridors, particularly during periods of peak daytime demand.

For an archipelagic nation such as the Philippines, energy experts increasingly view distributed generation as an important complement to large, centralized power stations.

Strategically locating renewable energy assets within local distribution networks can ease pressure on existing grid infrastructure while improving supply reliability.

When paired with battery energy storage systems, embedded solar plants can also help manage fluctuations in renewable generation and provide greater operational flexibility for distribution utilities.

The latest investment also aligns with the government's long-term renewable energy ambitions.

"Our vision to Power a First World Philippines aligns with LANDBANK's commitment to sustainable nation-building, enabling us to accelerate the delivery of renewable energy projects that advance the country's energy transition and create lasting value for Filipino communities," said CREC President and CEO Oliver Tan.

He added that the collaboration "underscores the critical role of public-private partnerships in advancing the Department of Energy's target of increasing renewable energy's share in the country's power generation mix to 50% by 2040."

LANDBANK likewise framed the financing as part of its broader mandate to support sustainable national development.

"Our partnership with CREC reflects LANDBANK's commitment to financing transformative projects that expand access to reliable power, create opportunities, and accelerate the country's green transition. We are fully committed to ensuring our rural communities' benefit from a cleaner, more secure energy grid," said LANDBANK President and CEO Lynette V. Ortiz.

As renewable energy projects continue moving beyond centralized generation and into local distribution networks, embedded solar may become an increasingly important component of the Philippines' evolving electricity system.

While expanding renewable capacity alone will not address every challenge facing the power sector, bringing generation closer to consumers offers a practical way to improve grid efficiency, strengthen energy security, and reduce strain on transmission infrastructure as electricity demand continues to grow across the archipelago. #GSU