The National Power Corp. (NPC) is in talks with private firms to speed up the hybridization of off-grid power plants in the country with renewable energy (RE).
Fernando Martin Roxas, NPC president, told reporters in an interview in Quezon City last week he has talked to 18 developers, including DMCI Corp., the Ayala group and local RE firm Alternergy.
Roxas said majority of the companies have expressed interest to take part in the project.
“Generally, the average rate in (the) islands today as approved by the ERC (Energy Regulatory Commission) is about P7 per kilowatt hour. It is financeable, it is possible, we just need to organize our offer to them and we (NPC) should be the counterpart in the contracts,” Roxas said.
NPC supervises 278 Small Power Utilities Group (SPUG) power plants nationwide. These are mostly diesel-fired generator sets located in remote areas and are not connected to the main grid.
“Our plan is to hybridize the first 25 percent since current prices of electricity in the regions are not enough to remove diesel units… If we achieve the first 25 percent, the plan is to convert the remaining 75 percent using biofuels,” Roxas said.
Roxas said apart from lessening dependence on imported diesel fuel, hybridization of SPUG plants will also improve tourism.
NPC also plans to ask RE providers to link their power projects with livelihood components to create a positive impact on the island provinces.
Roxas said the goal is also to power all SPUG plants by 100 percent RE by 2028 or by the end of the current administration’s term.
Apart from managing SPUG power plants, NPC is also tasked to oversee watersheds and locate indigenous sources of power. – Jed Macapagal
