Citicore Renewable Energy Corp. (CREC) and Pampanga I Electric Cooperative (PELCO I) have begun construction of a 41-megawatt-peak embedded solar facility with battery storage, a project that could help reduce electricity costs and system losses while strengthening energy security in Pampanga.
The project in Magalang is the country’s first embedded solar facility integrated with an Integrated Renewable Energy and Energy Storage System (IRESS), according to CREC. Once operational in the second half of 2027, it will combine a 41-MWp solar plant with a 53-megawatt-hour battery energy storage system.
Unlike conventional utility-scale solar farms that feed electricity into the national grid, the embedded facility will supply power directly to PELCO I’s distribution network. That setup is expected to reduce transmission losses, improve voltage stability, and lessen dependence on more expensive electricity sourced from the wholesale market during periods of high demand.
For electric cooperatives, embedded generation is increasingly emerging as a practical way to improve service reliability while cushioning consumers from volatile power prices.
“Citicore’s long-standing partnership with PELCO I since 2024 is really about creating tailor-fit energy solutions meant to ease the burden of soaring electricity costs to the cooperative’s member-consumer-owners,” said Jerard Garcia, president of Citicore Energy Solutions Inc.
The project is financed through a P4.05-billion project loan from LandBank covering two embedded solar developments, including the PELCO I facility.
Beyond lowering costs, the solar-plus-storage project will also help the cooperative comply with the government’s Renewable Portfolio Standards, which require distribution utilities to gradually increase the share of renewable energy in their supply mix.
For CREC, the project further expands its renewable energy footprint in Pampanga following its 115-MWp Arayat-Mexico Solar Farm and the 42-MWp Citicore Solar Pampanga 1.
“This marks a monumental milestone in the history of PELCO I,” General Manager Allan David said.
The project also signals a broader shift in the Philippine power sector, where embedded renewable energy is gaining traction as distribution utilities look for localized, lower-cost supply solutions that improve grid resilience while accelerating the country’s transition to cleaner energy.
