IN A DECISIVE move towards sustainability and economic resilience, Makati City has emerged as a national trailblazer by becoming the first local government unit in the Philippines to transition to 100 percent renewable energy—unlocking projected savings of over P300 million while setting a benchmark for urban transformation.
This milestone initiative not only strengthens Makati’s energy security but also reinforces its global standing as a forward-thinking city committed to climate action and sustainable development.
CLEAN ENERGY
The recognition of Makati’s groundbreaking transition was formally conferred by the Energy Regulatory Commission (ERC), which cited the city as the first LGU to fully embrace renewable energy utilization under the Retail Competition and Open Access framework and the Retail Aggregation Program.
The recognition coincided with the signing of a nine-year Renewable Energy Supply Agreement between the Makati City government and ACEN Corporation, a leading provider of renewable power solutions.
Under the agreement, all 154 government facilities—including the New Makati City Hall, Ospital ng Makati, and the University of Makati—will shift from conventional energy sources to clean power derived from solar, wind, and geothermal systems.
ENERGY SECURITY
At the core of this transition is not only environmental responsibility but also sound fiscal management.
Through a guaranteed discount mechanism embedded in the agreement, Makati is projected to save approximately P300 million over the nine-year contract period—funds that can be redirected toward essential public services such as healthcare, education, and infrastructure.
Mayor Nancy Binay emphasized that the initiative comes at a critical time when global uncertainties continue to drive volatility in energy prices.
By shifting to renewable energy, the city reduces its dependence on traditional power sources, insulating itself from fluctuating costs while ensuring a stable and sustainable energy supply.
CIRCULAR ECONOMY
Beyond savings, Makati’s energy transition reflects a broader vision of governance rooted in sustainability and efficiency.
The initiative aligns with the principles of a circular economy—where resources are maximized, waste is minimized, and energy is reused across systems. Clean energy powering government facilities will also support the city’s growing fleet of electric vehicles, including e-jeepneys, e-buses, and e-shuttles.
In line with this vision, ACEN will install 19 electric vehicle charging stations across key city locations at no additional cost, further strengthening Makati’s green mobility ecosystem.
CLEANER FUTURE
The environmental benefits of the transition are equally significant.
Over the duration of the agreement, Makati is expected to prevent approximately 289,885 metric tons of carbon emissions—an impact equivalent to removing around 62,000 vehicles from the roads or eliminating the consumption of more than 100 million liters of diesel.
Such reductions contribute directly to global climate action goals and reinforce the city’s commitment to the United Nations Sustainable Development Agenda.
INSPIRING CITIES
Makati’s bold step is not only a local achievement but also a call to action for other cities in the Philippines and across Southeast Asia.
As one of the most densely populated and economically active urban centers in the country, Makati’s successful transition demonstrates that even highly urbanized areas can adopt clean energy solutions without compromising growth or efficiency.
City officials expressed hope that this initiative will inspire other local governments to explore similar programs, proving that sustainability and economic progress can go hand in hand.
POWERING TOMORROW
As Makati moves forward with its renewable energy transformation, it sends a clear message: the future of urban development lies in innovation, responsibility, and long-term vision.
By investing in clean energy today, the city is not only securing financial savings but also building a resilient and sustainable environment for generations to come.
In an era where cities face mounting challenges from climate change and rising energy demands, Makati stands as a shining example of how bold leadership and strategic partnerships can power a greener, smarter, and more sustainable future.
NATION BUILDING
Makati is not just saving millions—it is proving that the future of cities begins with the power to choose sustainability today.
In choosing clean energy, Makati is not only powering its future—it is lighting the path for every Philippine city to follow.