As AboitizPower pursues a 191-MW solar and battery storage facility in Manolo Fortich, residents stand to gain from renewable energy development—but land use, livelihoods, environmental safeguards and community benefits must also be addressed.
CAGAYAN DE ORO CITY (November 5) — A ₱750-million investment in a proposed solar power and battery storage facility in Bukidnon promises to expand Mindanao’s renewable energy capacity. But beyond the megawatts and corporate investment, the project raises a more immediate question for communities in Manolo Fortich: What will the transition to clean energy cost the people living where the facility will be built?
Aboitiz Power Corp. (AboitizPower), through its wholly owned subsidiary Aboitiz Renewables Inc. (ARI), is pursuing a 60-percent stake in Manolo Fortich Power Corp. (MFPC), the developer of a proposed 191-megawatt (MW) solar power facility integrated with a Battery Energy Storage System (BESS) in Barangay Dalirig, Manolo Fortich.
In a disclosure on Tuesday, November 3, AboitizPower said ARI signed an agreement on October 30 to subscribe to ₱750 million worth of shares in MFPC.
The proposed investment is part of AboitizPower’s goal of expanding its renewable energy portfolio to 4,600 MW by 2030.
For Mindanao, where the expansion of renewable energy is increasingly important to meeting future electricity demand, the project represents another significant private-sector commitment to cleaner power generation.
But renewable energy development is not automatically without social and environmental costs. The people hosting these facilities must also be considered in decisions about land, resources, livelihoods and the distribution of economic benefits.
When clean energy meets local livelihoods
MFPC plans to develop, construct, finance and operate the solar facility, battery storage system and related interconnection infrastructure in Barangay Dalirig.
While solar energy reduces dependence on fossil-fuel-based electricity generation, large-scale solar installations require substantial land areas.
This makes land use one of the most important issues to examine as the project moves forward.
The conversion or long-term use of agricultural and other productive land for energy infrastructure could affect farming activities, access to land and the livelihoods of households that depend on these resources. The actual extent of these impacts will depend on the project’s land requirements, ownership arrangements and final site development plan.
For farmers and other land-dependent residents, the concern is not simply whether the project will generate electricity, but whether renewable energy development will displace existing economic activities or restrict access to resources without adequate consultation and compensation.
The construction phase may also bring temporary disruptions, including increased heavy vehicle traffic, dust, noise and pressure on local roads and other community infrastructure.
These concerns require assessment before construction begins, rather than being addressed only after complaints emerge.
The environmental cost of storing solar power
The project also includes a Battery Energy Storage System, which can store electricity generated during periods of strong sunlight and release it when solar production declines.
Battery storage can help address the intermittent nature of solar generation and improve the flexibility of electricity supply.
However, battery systems also require responsible management throughout their operating life.
Depending on the technology used, these systems may involve fire and thermal safety risks, specialized maintenance requirements and eventual disposal or recycling of battery components.
Proper fire prevention, emergency response arrangements, hazardous-material handling and end-of-life waste management must therefore form part of the project’s environmental and safety safeguards.
The project’s environmental assessment should also establish whether the proposed site could affect local water resources, drainage, soil conditions, vegetation and surrounding ecosystems.
These are not arguments against renewable energy. They are necessary safeguards to ensure that the environmental benefits of clean power are not achieved at the expense of the communities and ecosystems hosting the infrastructure.
Who benefits from the investment?
Under the proposed transaction, ARI will subscribe to ₱3.75 million worth of common shares and ₱746.25 million worth of redeemable preferred shares in MFPC.
The preferred-share subscription is subject to Securities and Exchange Commission approval of an increase in MFPC’s authorized capital stock.
The initial subscription will be paid upon closing of the relevant agreement, while the remaining amount will be payable upon a call by MFPC’s board following regulatory approval.
The transaction remains subject to customary closing conditions, including satisfactory technical, legal, financial, tax and land due diligence.
AboitizPower said the proposed ₱750-million subscription price for the 60-percent equity interest represents less than 10 percent of its consolidated assets as of December 31, 2025.
While the investment signals corporate confidence in the renewable energy sector, the economic benefits for the host community will depend on how the project is implemented.
Local employment, procurement from small businesses, infrastructure improvements and community development programs are potential benefits that should be translated into clear and measurable commitments.
The company and local authorities should also explain whether the project will create sustained employment beyond the construction period, how local residents can qualify for available jobs, and what mechanisms will ensure that host communities receive a fair share of the development’s benefits.
For households, another important question is whether the additional generating capacity will contribute to a more reliable electricity supply or more affordable power. These outcomes cannot be assumed from the investment alone and will depend on grid arrangements, electricity contracting and regulatory conditions.
Consultation and accountability must come before construction
The proposed project also places responsibility on local government units and relevant regulatory agencies to ensure that development proceeds with adequate public participation and safeguards.
Residents should have access to understandable information about the project’s land requirements, environmental impact assessment, construction schedule, safety measures and grievance mechanisms.
If the project affects ancestral domains or Indigenous Peoples’ rights, applicable requirements for consultation and free, prior and informed consent must also be observed.
Local officials should ensure that community concerns are documented and addressed, while the developer should establish a transparent mechanism for receiving complaints, resolving disputes and reporting compliance with its commitments.
The proposed acquisition is still subject to due diligence, giving the parties an opportunity to identify and address potential social and environmental risks before the transaction and project implementation advance.
For Barangay Dalirig and the wider Manolo Fortich community, the measure of a successful renewable energy project should not be limited to its generating capacity or the amount of private capital invested.
It should also be measured by whether farmers and landowners are protected, local livelihoods are sustained, environmental risks are managed, residents have meaningful participation and economic benefits reach the people hosting the development.
Clean energy should not mean transferring the costs of development to rural communities while concentrating its benefits elsewhere.
