The country’s renewable energy sector is set to further expand.
The National Power Corp. (NPC) met with around 80 potential players last week on its accelerated hybridization project (AHP) aimed at incorporating RE facilities in Small Power Utilities Group (SPUG) power plants in far-flung islands and villages.
NPC said the conference was led by the Public-Private Partnership (PPP) Center.
“With the AHP, private power providers will be able to participate in renewable energy generation in SPUG areas. They shall develop, finance, construct and operate a renewable energy resource and NPC will be the off-taker of the electricity generated,” said Fernando Martin Roxas, NPC president and chief executive officer, in a statement.
The state-run firm currently operates 281 SPUG plants in 190 municipalities nationwide.
NPC said after the initial meeting, the PPP Center will make an evaluation on the interest expressed by private sector to participate in the bidding of the initial four clusters of off-grid areas – Batanes, Palawan, Bicol and Tawi-Tawi – before the remaining clusters are opened .
Roxas said apart from utilizing more clean fuel, the AHP will also reduce the use of the universal charge subsidies and the fuel costs incurred by NPC. It will also help electric cooperatives and distribution utilities meet the renewable portfolio standard requirements for off-grid areas.
Roxas earlier said NPC aspires to run at least 25 percent of its power plants in areas under SPUG with RE in the next two years.
At present, total RE use in all SPUG power plants is at only 2 percent.
