Camigreen Inc. has officially broken ground on the 4 MWp Camiguin Solar Power Project in Barangay Liong, Guinsiliban. The facility is significant as the first fully developed renewable energy project in the Philippines implemented under the Embedded Generation Facility–Lease-to-Own (EGF–LTO) framework.
The project is designed to provide daytime embedded generation to the Camiguin Electric Cooperative (CAMELCO), a solution intended to reduce the island’s high dependence on imported and diesel-based power. The facility is targeting a Commercial Operation Date (COD) in the first quarter of 2026.
New Model for Underserved Grids
The Camiguin project addresses persistent challenges faced by small, poorly connected local grids in the Philippines, which often suffer from high electricity costs and reliance on remote or diesel-based supply for grid stability.
The EGF–LTO framework, strongly supported by the National Electrification Administration (NEA) and the Department of Energy (DOE), provides an adapted contracting structure for electric cooperatives (ECs). This model is designed to unlock private investment in renewable energy for settings where conventional investment structures have struggled to penetrate.
After over five years of preparatory work, the project stands as a practical example of how regulatory innovation can make renewable energy commercially viable for developers while creating a strategic asset for the local distribution utility, CAMELCO.
Regulatory Compliance and Structure
The project is structured around the legal mandate that allows Philippine Electric Cooperatives to develop, acquire, and operate their own generation assets.
The Embedded Generation Facility (EGF) framework, introduced by the NEA in 2013, permits cooperatives to host renewable-energy facilities through arrangements similar to Build-Operate-Transfer or Lease-to-Own. Under the EGF–LTO mechanism, cooperatives pay for energy through a recovery-based tariff that gradually converts electricity expenditure into equity, leading to the eventual transfer of the asset to the cooperative.
The Camiguin Solar Power Project is the first in the country to complete all necessary regulatory, technical, and legal prerequisites for full implementation under this framework, having secured a DOE Certificate of Confirmation of Commerciality on April 11, 2025.
Key Stakeholders and Projected Impact
The development was led by renewable energy consultants Freya, PA Energy, and Joywood Industries. Their decision to pursue the complex EGF–LTO model, rather than a conventional Power Purchase Agreement (PPA), was noted as crucial to establishing this new contracting structure.
CAMELCO was cited as an equally important partner for proactively engaging in this alternative supply approach, demonstrating that even a small island grid can participate meaningfully in regulatory innovation. The project also reflects the constructive collaboration of the local government of Camiguin and the guidance of DOE, NEA, and ERC.
Carola Carrion, Camigreen President, highlighted the significance of the project’s location: “We didn’t choose the easy path. We chose an island that needed us. This is just the beginning today we power an island. Tomorrow, the region.”
The project’s anticipated impact includes:
- Reduced dependence on diesel-fired generation for daytime supply
- Improved voltage stability for CAMELCO’s distribution network
- Transformation of local power rates by assuring a future of reliable, clean, and potentially cheaper energy for Camiguin inhabitants
- Validation of a new model that could reduce uncertainty and encourage other investors and ECs to pursue local renewable energy initiatives