By Tracy Cabrera
MANILA — In a landmark move for local governance in the Philippines, Makati City has become the first local government unit (LGU) to operate entirely on renewable energy, a transition projected to save the city more than ₱300 million while boosting its climate resilience strategy.
City Mayor Maria Lourdes Nancy Sombillo Binay-Angeles described the development as a major step toward sustainable and financially responsible governance, highlighting its role in strengthening both energy independence and environmental leadership.
The Energy Regulatory Commission (ERC) officially recognized the city’s achievement, citing Makati as the first LGU to fully implement renewable energy sourcing under the Retail Competition and Open Access and Retail Aggregation Program frameworks.
The recognition followed the signing of a nine-year Renewable Energy Supply Agreement between the Makati City government and ACEN Corporation, a leading renewable energy company in the Philippines.
Through the agreement, all 154 city facilities—including major institutions such as Makati City Hall, Ospital ng Makati, and the University of Makati—will shift to electricity generated from renewable sources such as solar, wind, and geothermal energy.
According to the mayor, the agreement includes a guaranteed discount mechanism that will allow the city to realize up to ₱300 million in savings over the contract period. These funds, she said, will be redirected toward essential public services including health programs, education initiatives, and infrastructure development.
She also stressed that the transition helps protect the city from unpredictable energy price fluctuations by reducing reliance on conventional power sources.
The initiative forms part of Makati’s broader sustainability roadmap, which promotes circular economy principles and supports the integration of electric mobility systems such as e-jeepneys, e-buses, and e-shuttles.
To support this shift, ACEN will deploy 19 electric vehicle charging stations across strategic city areas at no cost to the local government, enhancing the city’s clean transportation network.
Environmental gains are also substantial, with the project expected to avoid nearly 289,885 metric tons of carbon emissions over nine years—comparable to taking about 62,000 vehicles off the road or eliminating more than 100 million liters of diesel use.
ia/xf
