During the 1989 state visit of then President Corazon Aquino to the Kingdom of Belgium, the government of KOB presented to her a grant for the solar electrification of remote areas. The grant included the supply of a centralized solar power plant.  Pangan-an Island was chosen as "it responds to the conditions of being a relatively remote island with a small community, living partly in a clustered way, partly dispersed manner".

     The University of San Carlos performed a socio-economic profile of the island which became the basis of the project study for the solar electrification project. On November 5, 1996, the Belgian Agency for Development Cooperation (BADC) contracted the services of Cebu Electric Cooperative (CEBECO) as the project implementor. One of the tasks was the social preparation and community organizing in the island. This task, which was sub-contracted to the University of San Carlos, includes information campaigns and the organization, capacity building and monitoring of the PICCD. Also, CEBECO was given the task of constructing the 220-volt distribution grid, installation of house wiring to target households and installation of street lightings.

     The ground-breaking ceremony took place on April 28, 1998. The civil works for the power plant started in May 1, 1998 and was handled by a local contractor, Genson-Hourini Development Corporation. On November 12, 1998, the civil works were completed,  together with the completion of teh power plant equipment installation by the Belgian contractor, Energies Nouvelles Et Environment (ENE).

     On December 7, 1998, the PISEP was inugurated.