Mindanao Businesses Embrace Solar Power with Landmark 8.4 MW Agreement

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Mindanao in the Philippines, the southernmost island, is a power-hungry but energy-starved province. Like much of the Philippines, it is highly dependent on fossil fuels, but also has the highest potential for renewable energy in terms of wind (onshore and offshore), hydroelectric, geothermal, and solar.

A significant step toward a cleaner energy future for Mindanao’s commercial and agricultural sectors was announced following a major solar power agreement between Berde Renewables, KCC Malls, and Biotech Farms. The landmark 8.4 MWp solar power purchase agreement (PPA) will provide clean, cost-efficient energy to three KCC Malls and a Biotech Farms facility, highlighting a growing trend of sustainable business practices in the region.

Under the “zero-CAPEX” model, Berde Renewables, backed by global infrastructure investor I Squared Capital, will fully fund the project, including its construction, operation, and maintenance. This arrangement allows KCC Malls and Biotech Farms to integrate renewable energy without any upfront capital investment, making the transition to solar power more accessible for businesses. Once operational, the projects are expected to generate approximately 13 million kWh of clean energy annually, leading to an estimated ₱5.8 million in monthly savings and offsetting 9,600 tons of carbon dioxide emissions each year.

Officials from both KCC Malls and Biotech Farms expressed their commitment to sustainability. KCC Malls CEO Arvin Chan noted that the partnership reflects the company’s efforts to modernize and enhance its sustainability standards. Meanwhile, Biotech Farms Renewable Energy Director Rainnyl Chiang emphasized that the initiative will help secure a stable power supply while reducing the company’s environmental footprint.

This agreement is a powerful demonstration of the shift in Mindanao’s energy landscape and could have a significant ripple effect on the region’s renewable energy (RE) scene. The partnership shows that major players in energy-intensive sectors like retail and agriculture are now ready to invest in large-scale RE projects. This move is particularly impactful for Mindanao, which has historically relied on a mix of hydropower and fossil fuels, with an increasing dependence on the latter in recent years.

The deal validates the zero-CAPEX PPA model as a viable and attractive solution for businesses looking to adopt solar power. This financial model can encourage other companies to follow suit, overcoming the major barrier of high initial installation costs. As more large corporations make the switch, it builds momentum for the widespread adoption of renewable energy, creating a more robust and decentralized energy grid. This shift could help Mindanao reduce its reliance on traditional, and often more expensive, fossil fuels.