ALABEL, SARANGANI— Alsons Power, the power generation arm of the Alcantara Group, is advancing its clean energy transition with the conversion of its 55-megawatt Southern Philippines Power Corporation (SPPC) diesel facility into a 98.7 MWac solar power plant in Alabel, Sarangani.

The project will be implemented in two phases starting in the second quarter of 2026, marking a major shift from fossil fuel-based generation to renewable energy within the company’s portfolio.

Strategic shift to renewables

According to Alsons Power, the transformation reflects its long-term strategy to deliver more reliable and affordable electricity while aligning with the Philippines’ push for cleaner energy sources. The company said repurposing the existing diesel plant allows for faster development, better asset utilization, and improved contribution to national renewable energy targets.

“We are excited to begin the transition of our fossil fuel assets into renewable energy facilities,” said Alsons Power President and CEO Antonio Miguel B. Alcantara. “This marks more than the start of a major project. It is a decisive step toward a more diversified energy portfolio and a more energy-secure future.”

EPC contract awarded for Phase 1

Alsons Power has signed an Engineering, Procurement, and Construction (EPC) contract with Sinohydro Corporation Limited and POWERCHINA Philippines Corporation for Phase 1 of the project, which covers a 45 MWac solar installation.

The EPC partners will handle both offshore and onshore works. POWERCHINA, a global infrastructure and clean energy firm operating in over 130 countries, is expected to bring extensive technical expertise in renewable energy development.

Alsons officials said the partnership is intended to ensure timely completion of the project in line with its Green Energy Auction Program Round 4 (GEAP-4) commitment, with delivery targeted ahead of September 2027.

Boost for energy security and sustainability

The SPPC Solar project is among the winning projects under GEAP-4, which secures long-term offtake arrangements and strengthens the project’s financial viability.

Once completed, the facility is expected to generate enough electricity to power approximately 104,000 households, providing a significant boost to energy supply in Mindanao while reducing reliance on diesel-based generation.

Alsons Power emphasized that the transition supports both environmental goals and long-term energy security, as the Philippines continues to expand its renewable energy capacity.

Phase 2 to include battery storage system

In parallel, preparations for Phase 2 are underway, including the evaluation of integrating a solar photovoltaic (PV) system with a battery energy storage system (BESS). The addition of BESS is expected to enhance grid stability, address solar intermittency, and support peak demand management.

The company said the storage component would also improve the project’s reliability and bankability, making it a more resilient asset within its renewable portfolio.

Long-term transformation

Alsons Power said the SPPC Solar project represents not just expansion but transformation—repurposing existing fossil fuel infrastructure into cleaner energy systems.

“SPPC Solar highlights our commitment to evolve with the country’s energy needs,” Alcantara said. “We are not only expanding our renewable portfolio but strategically transforming our existing assets to create long-term value and sustainable benefits.”

The project is seen as a key milestone in Alsons Power’s broader shift toward low-carbon energy and the Philippines’ ongoing transition to more sustainable power generation.