The National Power Corp. (NPC) is eyeing to run at least 25 percent of its power plants in areas under Small Power Utilities Group (SPUG) with renewable energy (RE) in the next two years.
SPUG power plants are located in islands and communities that are not connected to the main transmission grid which is funded by revenues from power sales and from the universal charge being collected from all power consumers in the country.
Most SPUG power plants are powered by diesel-fired generators. Total RE use in all SPUG power plants is only around 2 percent.
NPC oversees a total of 281 power plants under the said category in 189 municipalities across 35 provinces.
“Hopefully, the first 25 percent would happen next year and then work on the rest of the 75 percent after that… (The plan is to raise to raise it to 25 percent at) start of next year. Maybe two years to reach the full 25 percent and another four years to reach close to a 100 percent,” said Fernando Martin Roxas, NPC president and chief executive officer, at the sidelines of the Future Energy Show event in Pasay city last Monday.
Roxas said the plan is to start with solar and then move to other technologies.
Last March, NPC signed a memorandum of understanding with APTI Renewable Energy Corp. to promote and identify priorities for the development of sustainable renewable energy using biofuel and biomass hybrid power SPUG areas as part of the firm’s sustainability agenda.
The Department of Energy (DOE) has issued the implementing guidelines of Executive Order 21 signed by President Ferdinand Marcos Jr. last month which will facilitate the development of offshore wind (OSW) investments in the country.
The guidelines included a provision which mandates permitting agencies to identify and submit the complete list of appropriate permits and clearances to the DOE, including all requirements, fees and procedures as well as a detailed process flow diagram on or before June 18.
Permitting agencies include the Department of Agrarian Reform, Department of Agriculture, Department of Environment and Natural Resources, Department of Justice, Department of Labor and Employment, Department of National Defense, Department of Public Works and Highways, Department of Trade and Industry, Department of Transportation, Bureau of Customs, Bureau of Immigration, Bureau of Internal Revenue, Bureau of Quarantine, Energy Regulatory Commission, National Commission on Indigenous Peoples, National Grid Corporation of the Philippines, National Mapping and Resource Information Authority, National Power Corp., National Transmission Corp., Power Sector Assets and Liabilities Management Corp. and concerned local government units (LGUs).
The DOE shall integrate into the Energy Virtual One-Stop Shop (EVOSS) system all the identified processes, which will be used by all permitting agencies, including LGUs, in processing the applications for permits from OSW developers.
Permitting agencies shall nominate their EVOSS focal persons who may be invited as resource persons when needed during the EVOSS Steering Committee Meetings.
EO 21 is seen to fast track the rollout of OSW projects in the country by mandating a policy and administrative framework for the optimal development of resources through a clear and streamlined process and timelines that eliminate red tape to accelerate the renewable energy capacity in the country from the current 22 percent to 35 percent by 2030 and 50 percent by 2040.
Based on DOE’s roadmap launched last year, the country’s potential OSW resources are estimated at 178 gigawatts (GW).
The DOE has awarded 65 OSW contracts with a total potential capacity of 51.2 GW.
