SM Offices Bets on Renewables to Power Growth and Attract Tenants

SM Offices, a business unit of SM Prime Holdings, Inc. (SM Prime), is scaling up its renewable energy (RE) use as part of a broader push to make sustainability a driver of growth and tenant value.

From rooftop solar grids to LEED-certified towers, SM Offices proves that clean energy drives resilient growth.

The SM Prime business unit now sources more than half of its operational power from certified renewable energy, reflecting how clean energy adoption is reshaping the country’s commercial property landscape.

As of mid-2025, SM Prime has installed solar photovoltaic (PV) systems across 48 malls and offices with a combined capacity of 73 megawatts peak (MWp).

“SM Offices not only supports but also goes beyond the Philippine government’s target of having 50 percent of the country’s power generation come from renewable sources by 2040,” Vice President and Head of SM Offices Alexis L. Ortiga said.

Under the National Renewable Energy Program (NREP) 2020–2040 of the Department of Energy, the Philippines aims to increase the share of renewables in its power generation mix to 35 percent by 2030 and 50 percent by 2040, supporting the country’s goals for energy security, sustainability, and climate resilience.

Across its expanding portfolio, SM Offices is integrating solar grids, sensor-enabled fixtures, and energy-efficient cooling systems into building design and operations—stabilizing energy costs, improving comfort and reliability, and enabling tenants to meet their sustainability commitments.

Several of its flagship developments—ThreeE-Com and FourE-Com Centers in the Mall of Asia Complex, Aura Tower beside SM Aura Premier in Bonifacio Global City, Mega Tower in Ortigas, and North Towers in Quezon City—have all achieved LEED Gold certification from the U.S. Green Building Council, underscoring its focus on performance and sustainability.

Currently, One E-Com, Two E-Com, and Five E-Com are undergoing LEED O+M certification, which recognizes excellence in the sustainable operation and maintenance of existing buildings. The certification focuses on energy efficiency, water conservation, indoor environmental quality and other measures that promote the health and well-being of both people and the environment.

Ortiga explained that their approach is both strategic and adaptive. “SM Offices remains resilient by integrating sustainability initiatives into its core strategies,” he said. “Our offices are located closer to where people live, helping reduce travel time and emissions, and we are expanding renewable energy use and EV charging infrastructure to support a lower-carbon economy.”

The model is proving commercially sound. Renewable energy reduces exposure to power price volatility, supports tenant ESG goals, and strengthens investor confidence. For companies under increasing pressure to meet sustainability metrics, leasing from a renewable-powered portfolio offers both stability and reputational upside. (SM PRIME)

SM Prime widens the landscape in renewable energy

As part of its net-zero commitment by 2040, one of Asia’s leading real estate and property developers, SM Prime Holdings, Inc. (SM Prime), partnered with global integrated energy company TotalEnergies for the installation of a 2 Megawatt-peak (MWp) Solar Photovoltaic (PV) System Rooftop project in Pasay City.

More than 3,600 solar panels were installed on the roof of MOA Square in the Mall of Asia Complex.

The partnership venture aligns with SM Prime’s efforts in expanding its renewable energy portfolio and affirms TotalEnergies’ commitment to advancing renewable energy solutions in various urban settings.

Designed with a power yield of 3,000 Megawatt-hour (MWh) of electricity annually, the solar partnership project has over 3,672 PV panels installed and is expected to provide huge cost savings for SM Prime. Located at the MOA Square in the Mall of Asia Complex, the solar installations are expected to reduce the building’s carbon footprint by about 1,430 tons of carbon dioxide (CO2) emissions annually.

"SM Prime is proud to work alongside TotalEnergies on this project. This partnership is our commitment to sustainability and achieving Net Zero by 2040. We are also taking a proactive stance in supporting the Department of Energy’s (DOE) target of reaching 35% renewable energy by 2030. Together, we’re driving meaningful change towards a more environmentally conscious future," said John Nai Peng Ong, SM Prime Chief Finance Officer. 

“We are thrilled to announce the successful deployment of solar rooftop installations at the Mall of Asia in the Philippines, marking a significant achievement in both environmental and economic sustainability for SM Prime,” said Elodie Renaud, Managing Director of TotalEnergies Renewables Distributed Generation Asia.

For the past few years, SM Prime continues to grow its partnerships with key clean energy players, leveraging its relationships and earned experiences to drive its environmental stewardship campaign. Capitalizing on these partnerships has provided for SM Prime huge economic, environmental, and social dividends.

In 2022, SM Prime secured a long-term deal with AboitizPower for its clean energy supply. Under the agreement, AboitizPower will provide reliable and responsibly-sourced energy from Tiwi-MakBan Geothermal Power Plants, and PV Sinag’s Power Plants, operated and managed by AboitizPower subsidiary, Aboitiz Renewables, Inc. (ARI).

The following year, SM Prime signed a memorandum of agreement with Citicore Renewable Energy Company (CREC), wherein SM Prime will source 90 megawatts (MWac) from CREC’s upcoming Lumbangan Solar Power Plant in Tuy, Batangas.

Apart from contributing to the DOE’s 35% renewable energy goal by 2030, all these partnerships are aligned with the energy department and Energy Regulatory Commission’s (ERC) policy of expanding the adoption of Retail Competition and Open Access (RCOA) in the energy industry.

To date, SM Prime currently sources at least 50% of its electricity utilization from clean, renewable energy.

SM Prime supports the Philippine government’s aim to increase the country's renewable energy supply component to 50% by the year 2040. It remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people. SM Prime is pursuing the next horizon on integrated property development and onward to building sustainable cities of the future. (PR)