The Department of Agrarian Reform 7 approved land conversion for the first half of a 187-hectare site in Daanbantayan, allowing the P7.5-billion, 150-megawatt solar project to begin construction by Q4 2026.
Provincial Administrator Ace Durano confirmed that while paperwork for the remaining lots is being processed, legal disputes over land valuation involving 30 to 40 percent of the site remain active in court.
The project, developed by Spain-based Acciona Energia, is labeled a project of national urgency and aims to address Cebu’s power deficit by providing electricity at a projected rate of P4.50 per kilowatt-hour.
A MASSIVE P7.5-billion solar power project in Daanbantayan is moving closer to reality. Even though there are ongoing court battles over land prices, the project has just cleared a major hurdle.
The Department of Agrarian Reform (DAR) 7 has approved land conversion for the first half of the 80 lots on the 187-hectare site in Barangay Tingub, meaning construction can finally begin in the fourth quarter of 2026.
Cebu Provincial Administrator Ace Durano confirmed on Friday, July 17, 2026, that the Provincial Government is currently processing the remaining half of the lots in batches. This 150-megawatt renewable energy project is being built by Spain-based company Acciona Energia under a 25-year build-operate-transfer agreement, with Power China serving as the builder.
Getting the green light for the land took a lot of paperwork across different government offices. On June 20, the province received clearance from the National Irrigation Administration (NIA) for half of the 80 lots.
"We applied in batches because of the numerous documentary requirements," Durano explained. "The first batch of applications has been cleared, and the Department of Agrarian Reform inspected the second batch yesterday."
Because all the pieces of land are very similar, Durano expects the rest of the approvals to come through quickly. Once those are secured, the province will apply for local permits in Daanbantayan. Initial engineering work is already starting, and actual construction is scheduled for the fourth quarter of this year, with plans for the solar farm to go online by the end of next year.
To help speed things up, the Provincial Board previously authorized the Provincial Legal Office to handle the applications with the NIA and DAR. Additionally, on Monday, July 13, the board approved a resolution to apply for a tree-cutting permit from the Department of Environment and Natural Resources (DENR) for 187 hectares of land in Barangay Talisay, Daanbantayan.
While the paperwork is moving forward, a legal fight over how much the land is worth is still active. Three ongoing court cases involve about 30 to 40 percent of the 80 lots. Landowners argue that the Provincial Government took their land through tax forfeiture—which happens when taxes are unpaid—without following the proper legal steps.
The prices for the land were set during the administration of former governor Gwendolyn Garcia. Durano explained that the current administration wants to settle these cases peacefully. However, they need a court order to pay the families more money.
"The Provincial Government cannot change this because the price was set by the provincial appraisal committee," Durano said. "We cannot simply agree to pay more without a court order. Paying more than the appraised value without a legal basis would be disadvantageous to the provincial government."
Durano assured everyone that the government will follow whatever the court decides. Because the landowners also want the solar farm to be built, both sides share a common goal, and a court decision in favor of the owners will not stop the project from moving forward.
Now that the first land approvals are in, the province is turning its attention to the local residents living on the site. While many of the official landowners live abroad, the government is preparing cash payouts for the tenants who actually farm the land.
"Under the land conversion rules, we must compensate these tenants," Durano said. "Now that the first land conversion clearance has been issued, we must compensate the registered tenants within a specific period, which is either 60 or 90 days."
These payouts will be based on the crops the tenants have grown over the last five years. At the same time, the province is working with the local environmental office to secure permits to cut or relocate trees on the property. To make up for the environmental impact, the project operator is legally required to plant 600,000 trees over the next 10 years.
The Department of Energy has labeled this solar farm a project of national urgency. Right now, it is the only immediate power facility planned to help fix Cebu’s frequent electricity shortages.
"The 150-megawatt capacity matches the current power deficit in Cebu," Durano said. "This solar farm will help meet peak demand when power is scarce."
The clean energy will go straight into the Visayas power grid, helping the entire island. Even better, it is expected to bring cheaper electricity, with a projected grid price of around 4.50 pesos per kilowatt-hour.
"This lower rate should reduce the overall cost of electricity in Cebu province," Durano said. "We currently rely on expensive imported coal and diesel, which are subject to price fluctuations and currency exchange rates. This solar power project will improve our energy security and lower power generation costs."