PLDT Inc. (PLDT) is accelerating the installation of solar power systems across its cell sites as it looks to manage rising electricity expenses and strengthen network reliability amid global economic uncertainty.
According to PLDT, electricity and fuel remain among the company’s largest operating expenses, with power costs becoming increasingly difficult to predict because of market fluctuations.
“With the current environment, it’s still too early to tell how consumer behavior will ultimately evolve,” said Menardo “Butch” Jimenez Jr., chief operating officer and head of network of PLDT. “We are looking at initial data to understand any impact on our business. On our end, the bigger focus is really on managing costs, especially electricity and fuel, and that’s where our sustainability initiatives come in.”
According to Jimenez, fuel expenses are partly protected through special pricing agreements with major fuel suppliers. Electricity costs, however, are more exposed to changing market conditions because many facilities do not operate under long-term power contracts.
“That’s where we’re seeing the biggest jump,” he said. “We’re becoming much more disciplined in how we manage power consumption, and we’re accelerating our ability to solarize our cell sites. This allows us to become more efficient and gives us greater control over our energy costs.”
The solarization program forms part of PLDT and Smart’s sustainability strategy, which includes a target of reducing Scope 1 and Scope 2 greenhouse gas emissions by 40% by 2030. The company has been integrating energy efficiency and renewable energy projects into network operations and facility management over the past several years.
By generating electricity on-site, PLDT aims to reduce dependence on the power grid, improve cost predictability, and keep cell sites operating during power disruptions. The initiative is particularly important in areas where electricity supply is less stable and energy prices are volatile.
“We don’t have the benefit of perfect visibility given global conditions,” Jimenez said. “What we can do is act decisively on the areas we can control. Solarizing a lot of our sites strengthens our resilience while supporting our sustainability goals.”
Smart also uses AI (artificial intelligence)-enabled green radio technology that automatically adjusts a cell site’s power consumption based on real-time network demand, helping reduce overall energy use.
“As long as current pressures do not extend deep into the second half of the year, we believe these measures will allow us to manage on the OPEX side,” Jimenez said. “Our priority is to protect our network, manage costs responsibly, and continue delivering reliable connectivity for our customers.”