Our Projects

CEPALCO: Demonstrating Conjunctive Use of Hydro and Photovoltaic

The Cagayan de Oro Power & Light Company (CEPALCO) is the developing world's first large scale joint hydroelectric / photovoltaic (PV) grid-connected project. IFC/GEF used an innovative project finance structure to invest in a $5.4 million solar photovoltaic power plant by providing a $4 million loan that converts to a grant after five years of operation if certain conditions are met and by CEPALCO contributing the remainder as equity.

In December 2004, President Arroyo of the Philippines inaugurated the plant, which along with an existing hydroelectric plant, constituted the first full-scale demonstration of the environmental and economic benefits of combining hydroelectric and PV power. The project involved installing a 1 MW grid-connected PV facility to maximize the efficiency of the 7 MW Bubunawan hydroelectric facility by supplementing the latter during peak hours and low-rainfall seasons. The new PV plant used solar modules manufactured by Sharp Corporation with Sumitomo Corporation serving as the turnkey contractor.

The PV installation was designed to meet peak power needs during the daytime, which in turn allowed the dam, which had insufficient water flow, to store capacity for evening use. The PV plant was constructed about 5 km south of the business district in the city of Cagayan de Oro, which is located within CEPALCO's distribution system, thus avoiding transmission and distribution losses. The combination of technologies effectively increased the capacity of the hydro unit and converted PV power to firm power for productive uses.

Learn more about the CEPALCO project:

• Download the flyer (PDF, 106kb)

Project contact:

Sandeep Kohli Senior Projects Officer Telephone: (202) 473-5317 Email: SKohli@ifc.org