PMCJ lauds Makati’s move toward RE; ₱300M savings eyed in the shift from fossil fuels
- Media Communications
- Mar 26
- 3 min read
Quezon City, Philippines — The Makati City local government unit (LGU) will source electricity from ACEN Corp.'s solar, wind, and geothermal plants to power its 154 properties. With that, the Philippine Movement for Climate Justice (PMCJ) praises Makati LGU for the latter’s switch to renewable energy (RE). In 2022, Makati City was also among the first LGUs to declare a state of climate emergency, recognizing the worsening impacts of the climate crisis at the local level.
“The move should also be coupled with efforts to call for the urgent phaseout of fossil-based power plants not only to address the impacts of the oil supply crisis at hand, but more so the rapid increase in global temperatures due to continuing greenhouse gas (GHG) emissions,” said Edwin Tesaluna, PMCJ senior RE officer.
ACEN’s nine-year RE supply agreement with Makati was signed on Mar. 19, 2026. The contract will allow Makati LGU to save ₱300 million in electricity costs. Based on LGU officials’ estimates, the deal would prevent 289,885 metric tons of GHG emissions from being released into the planet.
Renewable energy is already more affordable than fossil fuels. More than 91% of new RE projects are more economical than alternatives such as coal or gas, according to a 2024 study. The cost of solar and wind power has drastically decreased; solar PV is now 41% less expensive than the least expensive fossil fuel alternatives, while onshore wind is 53% less expensive.
“With the estimated ₱300 million savings, the LGU could allocate seed funding to organized communities and people’s enterprises operating in the city to jumpstart the switch at the grassroots level. But this must be implemented in accordance with strict protocols that ensure the recovery of the seed capital provided to expand the number of RE systems installed. This concept, if adopted, will increase the city’s estimated GHG curtailment and pave the way towards a 100% RE Makati City,” explained Tesaluna.
The contract between Makati City and ACEN reflects the increasing number of establishments, both private and public, that have opted for direct concessions with RE suppliers for their power needs. Under the Green Energy Option Program (GEOP) of the Department of Energy, end-users with a monthly average peak demand of at least 100 kilowatt-hours (for the past 12 months) may qualify.
“In theory, the program satisfies the preference of the consumer, but technically, there is the question of whether the actual power received is 100% from RE. We must bear in mind that, according to the 2025 report of the DOE, the current generation mix of the Philippine power sector is dominated by fossil-based sources at 78.8%, while RE accounts for 22.2%. And this is what is actually flowing in the country’s transmission lines. Until the country achieves 100% RE, end-users sourcing supply through the GEOP cannot completely claim that they are already GHG free,” stressed Tesaluna.
Advocating for RE should include the campaign to end coal, fossil gas, and other dirty energy sources. PMCJ, along with other climate and social justice groups and movements, emphasizes that a complete transition to RE is not possible without phasing out fossil fuels.
PMCJ further urges other local governments to follow suit because the sooner we transition to renewable energy, the sooner we will be able to protect the survival and recovery of the Filipino people from the harms of fossil fuels and the crises. If the LGUs are already carrying the path forward for a rapid, bold shift to renewable energy, the national government should no longer have an excuse not to do the same. ###
For inquiries, contact:
Sheila Abarra
Senior Media and Communications Officer
Philippine Movement for Climate Justice
Viber: +639916692356
WhatsApp: +639380898327
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