Aboitiz-Upgrade JV to supply power to Republic Cement
Aboitiz Upgrade Solar Inc. (AUSI) sealed a deal to develop and supply solar power to one of the factories of the Republic Cement group.
The supplier, a joint venture between Aboitiz Power Corp. and Upgrade Energy Philippines Inc. (UGEP), said the power purchase agreement with Republic Cement & Building Materials Inc. would involve deploying a ground-mounted solar facility in the latter’s Norzagaray plant in Bulacan.
Construction works are expected to be finished by the second semester of 2025.
The company did not disclose the project cost as well as its capacity but said they would fund the upfront capital and lead the operations of the solar facility.
The electricity produced from the solar project would then be sold exclusively to Republic Cement Services.
“This project sets a new benchmark for solar adoption in the industrial sector,” said James Yu, AboitizPower’s first vice president and head of retail.
“By bridging AUSI’s expertise in delivering innovative energy solutions and Republic Cement’s sustainability goals, we are creating a blueprint for how renewable energy solutions can power the Philippines’ industrial future,” Yu said in a statement on Tuesday.
Roman Menz, chief executive officer of Republic Cement Services Inc., said the company has been leaning towards shifting to a cleaner source of energy to power its facilities in the country.
“By integrating solar energy into our operations, we take a decisive step toward reducing emissions and contributing to a more sustainable Philippines,” Menz said.
Along with Republic Cement Mindanao Inc. which completes the group, Republic Cement has been manufacturing cement in the Philippines for over six decades, with seven facilities in the country.
AUSI, meanwhile, provides solar solutions to large commercial and industrial players.
In 2023, AboitizPower announced a team up with UGEP to roll out more solar projects across the country. Currently, the company has more than 1,000 MW of generating capacity based on renewables.
UGEP itself began in 2015 as a joint Venture between PhilCarbon, one of the pioneer renewable energy project developers in the Philippines, and Belgium-based Upgrade Energy.
