Aboitiz Upgrade Solar Inc. (AUSI), a partnership between Aboitiz Power Corp. and Upgrade Energy Philippines, has entered into a pivotal long-term solar power purchase agreement (PPA) with Republic Cement & Building Materials Inc. (RCBM). This marks a significant leap forward in the cement industry’s transition to clean energy and sustainability.
Under the agreement, AUSI will develop and operate a ground-mounted solar facility at RCBM’s plant in San Mateo, Norzagaray, Bulacan. The cement giant will purchase all the energy generated by the solar farm, which will provide the company with operational savings while reducing its carbon footprint. AUSI will finance the project’s upfront capital costs and handle its day-to-day operations, ensuring a smooth and sustainable energy transition.
Set for completion in the second half of 2025, the solar installation’s capacity and project cost remain undisclosed. However, the partnership represents a bold commitment to cleaner energy solutions, especially critical in the cement sector, known for its high carbon emissions.
Roman Menz, CEO of Republic Cement Services, emphasized the importance of integrating renewable energy (RE) into their operations, noting that the move would significantly reduce emissions and help the company meet its sustainability goals. “By integrating solar energy, we take a decisive step toward a more sustainable Philippines,” Menz said.
This collaboration aligns with Aboitiz Power’s broader strategy to expand its renewable energy portfolio. The group aims to add 3,600 MW of new renewable capacity by 2030, bringing its total renewable energy capacity to 4,600 MW as part of a combined 9,200 MW energy mix. The company plans to pair these renewable projects with thermal plants to support the country’s baseload and peak energy demands.
The AUSI-RCBM partnership is a milestone in the cement industry’s efforts to decarbonize and adopt cleaner, more sustainable energy sources.
