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Citicore Renewable Energy Corp. (CREC) has started construction of a 41-megawatt-peak (MWp) solar facility in Magalang, Pampanga, marking a new step in the company’s expansion of embedded renewable energy projects directly serving local power distribution networks.
The project, being developed with Pampanga 1 Electric Cooperative (PELCO I), is targeted for completion in the second half of 2027. It will feature a 53-megawatt-hour battery energy storage system, which CREC said will make it the Philippines’ first embedded solar facility with an Integrated Renewable Energy and Energy Storage System (IRESS).
The Magalang project is CREC’s third solar development in Pampanga and its first embedded solar project with PELCO I. It follows the company’s 115-MWp Arayat-Mexico Solar Farm, which was energized in 2022, and the 42-MWp Citicore Solar Pampanga 1, energized in 2025.
Direct Supply To Local Grid
Unlike utility-scale solar plants that typically deliver electricity through the national transmission system, the Magalang facility will be directly connected to PELCO I’s distribution network.
CREC said this arrangement can reduce transmission losses and help provide more localized power supply to consumers within the cooperative’s franchise area. Embedded generation can also help distribution utilities manage electricity requirements while supporting compliance with the government’s Renewable Portfolio Standards, which require power providers to progressively increase their sourcing of renewable energy.
The project’s battery storage component is expected to further support the integration of solar power, whose output varies depending on weather and daylight conditions. Energy storage systems can retain excess electricity generated during periods of strong solar production and release it when demand rises.
The government and industry players have been promoting battery storage as a way to address the intermittency of renewable energy sources such as solar and wind.
CREC and PELCO I have maintained a partnership since 2024, with the companies working on energy solutions intended to address electricity costs and supply requirements in the cooperative’s service area.
“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 for the cooperative’s member-consumer-owners,” Citicore Energy Solutions Inc. President Jerard Garcia said.
“We remain steadfast in strengthening our relationship as we bring clean and sustainable power for Kapampangans,” he added.
Embedded Renewable Capacity
The Magalang project is among two embedded solar developments supported by financing from the Land Bank of the Philippines. CREC and Landbank signed a ₱4.05-billion project finance loan facility agreement last month to fund the developments, including the PELCO I facility.
CREC is also developing another embedded solar project in Nueva Ecija with the same 41-MWp solar capacity and 53-MWh storage configuration, according to the company.
PELCO I General Manager Allan David said the start of construction represents a move toward long-term operational sustainability for the cooperative, while providing localized generation capacity to meet rising electricity demand in the area.
The Pampanga project forms part of CREC’s push to scale up its renewable energy portfolio. The company has interests across solar, wind, and hydropower and is targeting 5,000 MW of renewable energy capacity by 2028, from more than 500 MW currently.
Once completed, the Magalang facility is expected to provide clean and reliable electricity directly to consumers served by PELCO I, while demonstrating how renewable generation and battery storage can be integrated closer to end users.
Source:
https://tribune.net.ph/2026/08/07/crec-builds-third-pampanga-solar-project
https://business.inquirer.net/604528/crec-starts-work-on-41-mw-pampanga-solar-project