12.5 MWp embedded utility solar power plant in Misamis Oriental, Mindanao
First large-scale solar PV project in the Philippines built under a bilateral power supply agreement (PSA) with local utility
First bilateral solar PSA approved by the Energy Regulatory Commission
Became a subsidiary of Alternergy in June 2022
On the island of Mindanao, the quickly growing demand for power has been met by poor transmission infrastructure, and a heavy reliance on coal and diesel power plants.
With its 12.5 MWp Kirahon solar farm, Alternergy’s solar company, Solar Pacific, supplies approximately 8,900 local households and businesses with over 18 million kWh of clean, renewable energy each year. The solar PV power plant, which sits on 15 hectares of private property, interconnects directly to the local electric utility, Cagayan Electric Power & Light (CEPALCO), minimizing blackouts and enhancing grid performance. Since operations began in 2015, the Kirahon solar farm has generated 104% of the expected energy output, thanks to its use of the highest-quality technology and world-class plant operations.
First Bilateral Power Supply Agreement
The project began in 2013 when Solar Pacific, Alternergy’s solar developer, and CEPALCO entered into a 25-year power supply agreement (PSA) for the sale of energy to be generated by KSEC. This was the first bilateral PSA in the Philippines for a large-scale solar PV project, demonstrating that offtake agreements can happen outside of the government’s Feed-in-Tariff program.
Engaging New Stakeholders and Opening New Markets
The Kirahon Solar PSA was the first of its kind to be reviewed and approved by the Energy Regulatory Commission (ERC), helping to pave the way for future renewable power bilateral agreements. While negotiating the first non-recourse project financing in the Philippines for a utility solar power project from local lender RCBC, Solar Pacific embarked on an educational journey with all of the major stakeholders, including the lender, the utility off-taker, the ERC, and the local communities who supported the project. Since that time, the market for bilateral PSA contracts in the Philippines has flourished. In June 2022, 50% of the equity of KSEC was acquired by Alternergy Holdings Corporation, becoming its direct subsidiary.
Since operations began in 2015, the Kirahon solar farm has generated 104% of the expected energy output, thanks to its use of the highest-quality technology and world-class plant operations.
Equivalent in Kilowatt Hours
(Average Monthly Generation)
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Households to be Electrified:
Employment during Operation:
Equivalent Number of Tons of
Carbon Emissions Reduction:
Solar + Battery